Lowe's says shoppers are sticking to small projects as the home-renovation slump drags on

Core Insights - Homeowners are avoiding large renovations, but there is a trend towards smaller home improvement projects, which is seen as a positive indicator for 2026 [1][2] - Lowe's reported third-quarter results that surpassed analysts' expectations, although the profit guidance for 2025 was lower than anticipated [3] Consumer Behavior - Many homeowners are delaying expensive renovations due to affordability concerns and economic uncertainty, particularly regarding larger discretionary purchases [3] - High interest rates have made home renovations less appealing, especially for those needing loans [3][4] Market Conditions - Despite rising home prices providing borrowing opportunities, homeowners are waiting for lower interest or mortgage rates before committing to larger purchases [4] - There is potential for homeowners to access between $11 billion to $13 billion in equity for borrowing when interest rates decrease [4] Company Outlook - Lowe's executives express cautious optimism about future conditions as they anticipate potential near-term rate reductions could serve as an additional stimulus for consumer spending [5]