Home Depot says rough economic conditions — including high interest rates— are pushing customers to postpone big projects

Core Insights - Consumers are delaying large renovation projects due to unfavorable macroeconomic conditions, impacting the U.S. housing market [1][5] - Home Depot's CEO noted ongoing pressure on large remodeling projects attributed to uncertain macroeconomic conditions and high interest rates [1][5] - The average rate on a 30-year fixed mortgage remains just under 7%, contributing to a "golden handcuff" effect in the housing market, limiting supply [4][5] Company Performance - Home Depot's sales for professional customers outpaced do-it-yourself customers in the fourth quarter [3] - The company is not anticipating changes in the interest rate environment or improvements in housing turnover, expecting continued pressure on larger remodeling projects [5] Market Conditions - Pending home sales unexpectedly fell by 5.5% in December, pulling back from a 21-month high, indicating a slowdown in the housing market [5][7] - The National Association of Home Builders/Wells Fargo Housing Market Index for single-family housing dropped to its lowest level in five months due to tariff uncertainties [6]