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Home Depot customers stick to smaller projects as housing costs stay high
Fox Business • • general
Key Points:
- Home Depot reported a 5.7% increase in second-quarter sales to $47.9 billion, driven by consumer demand for smaller home improvement projects amid high mortgage rates and home prices.
- Comparable sales in the U.S. rose 1.3%, with average transaction value up 2.8% to $92.50, despite a 1% decline in the number of customer transactions.
- The housing market remains constrained by affordability challenges, with existing-home sales falling 1.7% in July and median home prices rising 2% year-over-year to $434,100.
- Elevated borrowing costs, including a 30-year fixed mortgage rate of 6.67%, are limiting larger renovation projects, though smaller-scale spending continues.
- Home Depot reaffirmed its fiscal 2026 guidance, expecting total sales growth of 2.5% to 4.5% and comparable sales growth between flat and 2%.
