A recovery in home improvement spending may not be on the horizon until interest rates ease, but consumers may be eager to tackle those delayed projects.
Home Depot Chief Financial Officer Richard McPhail couldn't ignore a difficult reality on the retailer's most recent earnings call: higher interest rates are forcing customers to shy away from big projects. "You have this odd irony of every sound bite you read, ... 'they're coming down soon,'" McPhail said, referring to the expectation of lower interest rates ahead, as he talked with investors on an earnings call on May 14.
From the fourth quarter of 2023 to the first quarter of this year, the so-called equity rich share of mortgages increased in 23 states, albeit by less than one percentage point, the firm said. Homeowner equity levels remain elevated compared with the pre-pandemic period. Higher levels of home equity, combined with a desire to tackle deferred projects, could be a plus for Home Depot and Lowe's once rates move lower.
Breaking News: Business Lowe's Companies Inc Home Depot Inc Investment Strategy Markets Business News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rising Temperatures, Rising Sharks: Unraveling The Bull Shark Boom In AlabamaKnown as the 'Mother of Sharks,' I'm a Latina marine biologist who has a lot of labels: science communicator, conservationist, author, educator, podcaster, television presenter. You might have seen me on Discovery Channel's Shark Week, National Geographic, BBC Wildlife, heard my TEDx talk or read my Scholastic books.
Read more »
15 Things That Used To Be Great Back In The Day'Theme parks. Rising crowds, rising ticket prices, rising costs for everything.'
Read more »
Demand for riskier adjustable-rate mortgages hits highest level of the year, due to rising ratesThe share of ARM applications rose to 7.8% of mortgage demand last week, according to the Mortgage Bankers Association. That is the highest level of the year.
Read more »
Demand for riskier adjustable-rate mortgages hits highest level of the year, due to rising ratesThe share of ARM applications rose to 7.8% of mortgage demand last week, according to the Mortgage Bankers Association. That is the highest level of the year.
Read more »
Scoop: Asian Americans fear hate crimes are risingFour years after the pandemic when the nation saw surges in anti-Asian hate, Asian Americans still feel they are targets.
Read more »
Scientists show ancient village adapted to drought, rising seasResearchers have unveiled evidence for ancient human resilience to climate change in the Eastern Mediterranean.
Read more »