President Donald J. Trump obviously thinks interest rate cuts are critical to the nation’s economy, so much so that he’s waged an open war of words with Fed chairman Jerome Powell over future rate reductions.

No one knows if or when Powell might bend to Trump’s do-it-or-else demands. The current betting is he may yet hold off on any rate cut this year, due to recent higher-than-expected inflation data that may discourage any action on the rate front in 2025.

One thing is clear: New Hampshire real estate agents, bankers, homebuilders and others aren’t exactly clamoring for a small cut in interest rates.

Most agree that a rate cut would modestly help interest-sensitive businesses by reducing overall costs tied to rate payments. In particular, homebuyers and other consumers, such as credit card holders, could benefit from a small decrease in projected interest rates.

But most business officials don’t think a rate reduction of half a point or even a full point later this year will make a radical difference for the New Hampshire economy.

Currently, the rates for a 30-year fixed-rate mortgage are hovering around 6.5 to 7 percent in New Hampshire, while construction loan rates vary from about 6.5 to 9 percent.

“I really don’t think small rate adjustments are going to push people to act differently,” said Mark Lynch, a Realtor at RE/MAX Synergy in Bedford. “I’m not really hearing a lot of noise in regard to rates and future rates. Occasionally, I’ll run into someone who’s really (focused) on rates. But most of the time, people aren’t talking about it much.”

Following is a quick look at what some Granite State businesspeople are saying about the interest-rate battle now under way at the national level.

Homebuilders

New Hampshire Home Builders Association CEO Matt Mayberry doesn’t think a small rate cut of a half percent or so will make much of difference on whether a ground-up housing project moves forward or not.

But he said a rate decrease could have a positive impact on the homebuilding industry via buyers who suddenly have a little more money to spare in their budgets – and conclude they have the financial flexibility to add a few more amenities to their new homes.

“They might say, ‘oh, we can afford that finished basement,’ or they say they want those granite counters,” he said. “Slightly lower rates can lead to more spending on amenities.”

Modestly lower rates might also boost the construction of Accessory Dwelling Units (ADUs), or small apartment-like additions to single-family home that state lawmakers have recently made easier to build in New Hampshire.

“It might make some ADUs more affordable,” Mayberry said. “The bottom line is a rate cut will be a small net plus for homebuilders, but it would be a net-net plus for buyers and owners.”

One other potential benefit of a small rate cut: It could convince some potential home sellers that it’s time to finally put their homes on the market, rather than waiting for big rates cuts that will make buying a replacement home more affordable, he said.

“It might move some people off the sidelines,” Mayberry said of a rate cut.

Real Estate

Stephan Morrissey, a senior associate broker at East Key Realty in Bedford, said he’s more worried about Trump’s tariff policies than he is with small interest-rate adjustments.

He noted that one potential buyer he was working with – an engineer in the metals industry – recently pulled out of a home-purchase deal at the last minute because he was unexpectedly laid off. The reason for the job loss: tariffs were hitting his employer hard.

“Little things like that are starting to happen more often in this economy,” he said. “I wasn’t seeing things like this before.”

As a result, Morrissey said he’s nervous about the economy slipping into a downturn soon.

An interest rate reduction might help stabilize the economy and real estate market a bit. But everything depends on the performance of the overall U.S. economy, he said.

Even if interest rates fall a bit and the economy holds firm, Morrissey said the real estate market would still suffer from the same problem that’s plagued it for a few years now: a shortage of homes for sale.

“Inventory will remain a challenge,” he said.

Morrissey and Lynch agree that a small rate cut probably won’t lure hesitant sellers, many of whom are currently sitting on super-low mortgages rates on their current homes, to put their houses on the market.

“If rates got into the 5s range, it might stir excitement, but I don’t think that will happen,” Lynch said.

If anything, the market would probably benefit from a slow, steady decline in rates, rather than a sudden plunge, Lynch said.

“If it falls too much too fast, it might dramatically increase demand,” further driving up already high home prices in New Hampshire, he said.

Banking

Bank of New Hampshire CEO Chris Logan said any fall in interest rates usually helps the economy.

He noted consumers would feel the benefits first, via lower credit-card rates and interest paid on mortgages and home-equity loans.

“A rate cut would help consumers faster than it would help other,” Logan said.

As to how a small rate reduction might impact commercial lending, it all depends on where long-term rates go, not short-term rates, and recent history has shown long-term rates can be very unpredictable, he said.

He noted the banking industry only recently emerged from the “inverted yield curve” era, or when the interest rates on a long-term bonds were lower than the interest rate on short-term bonds of the same credit quality.

“The shape of the (yield) curve has not been normal,” Logan said.

As a result, it’s hard to gauge how a small Fed rate decrease might impact things like multifamily construction loans.

“You can hope it (has an positive impact) but I’m not sure long-term rates are going to match short-term rates,” he said.