Home Depot has been hurt by higher interest rates, which have slowed housing turnover and demand for bigger projects.
On a call with CNBC, Home Depot CFO Richard McPhail said consumers are waiting for a Federal Reserve interest rate cut and expect one to come soon.
"What our customers tell their pros is, 'Everything I read tells me interest rates will be lower in three to six months,'" McPhail said."'Why would I borrow to finance the project now rather than just wait a few months?'"CEO Ted Decker also told investors on an earnings call on Tuesday that many homeowners face a"golden handcuffs dynamic" because they have mortgages as low as 3% and don't want to move, locking themselves into a higher rate.
He said a drop to around 6.5% for mortgage rates would likely approach"a level that people are going to engage."But it's unclear whether consumer uncertainty could still drag onHome Depot's leaders chalked up some of its weaker sales to a newer sense of caution among its customers, even though the vast majority of them own homes and have seen huge home equity gains.
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