DIY slowdown hits home improvement giants as mortgage rates climb

A slowdown in DIY home renovations is straining the home improvement industry as high mortgage rates dampen consumer activity.

Lowe’s reported a 5.1% decline in comparable sales for the second quarter, revising its forecast for a 3.5% to 4% annual drop. Rival Home Depot also adjusted its outlook, now predicting a 3% to 4% sales decline this year. Both companies, which operate over 4,000 US stores, are awaiting a potential interest rate cut to revive consumer interest in home improvement projects.

Despite falling mortgage rates, a rebound may be delayed until 2025, according to experts. The downturn is attributed to fewer big-ticket purchases and adverse weather conditions disrupting seasonal sales.