Investors are misinterpreting Home Depot’s (HD) correlation to the real estate market, with rising mortgage rates negatively impacting its stock performance. As of recent data, HD’s stock has lagged behind the S&P 500, which has gained nearly 12% since the start of 2026, while HD shares remain nearly flat. However, Home Depot’s latest earnings report released on August 18 revealed stronger-than-expected growth in smaller project spending and its Pro service segment, which is increasingly catering to contractors through streamlined supply chains.
Homeowners’ reluctance to sell due to high mortgage rates may trigger a new trend termed “Home Reno Boom 2.0,” where individuals invest in home renovations instead of moving. Renovation spending reached $517 billion in Q2 2026, marking a 2% increase year-over-year. Concurrently, the national balance of home-equity lines of credit (HELOCs) rose by $13 billion to $459 billion, providing homeowners with resources to finance these renovations while retaining their original low mortgage rates. As American homes age, averaging 44 years, the need for repairs and upgrades is anticipated to drive further growth.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
