TL;DR
Get home appliances delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
The Home Improvement Research Institute’s October 2026 economic update reports that rolling 12-month sales at building materials, garden equipment and supplies dealers reached $520.5 billion in August, the highest level in the 25 months tracked. It also points to a 6.86% 30-year mortgage rate, falling consumer confidence and continued contractor business and scheduling challenges.
The Home Improvement Research Institute (HIRI) reported that rolling 12-month sales at building materials, garden equipment and supplies dealers reached $520.5 billion in August 2026, the highest level in the 25 months tracked, even as mortgage rates climbed and consumer confidence fell. Its October Economic & Industry Update also found that contractors continued to report difficulty closing new business and postponing scheduled jobs.
The 30-year mortgage rate rose to 6.86% in September, marking its seventh consecutive monthly increase and its highest reading since January 2025, according to the report. The Conference Board’s Consumer Confidence Index fell 7.6% to 81.9 that month, its lowest reading in the 25 months tracked. These measures point to a more difficult setting for consumers considering home purchases or improvement projects, though the report does not establish that either indicator caused the sales or contractor results.
Contractor responses showed mixed movement. Among contractors reporting sales challenges, 45% cited difficulty closing new business, up from 23% in the second quarter of 2026. Separately, 54% postponed or cancelled scheduled jobs in the third quarter. That was down from 60% in Q2 2026, but above the 30% reported for Q3 2025.
The sales figure is a rolling 12-month total, not sales for August alone. HIRI’s update is a monthly compilation of general economic, housing-market and home-improvement data, with analysis of how economic indicators may affect the sector. The source article provides these headline findings but does not include the full report’s methods or detailed tables.
Sales Strength Meets Contractor Pressure
The figures present a mixed picture for the home-improvement market: dealer sales reached a high for the period tracked, while borrowing costs, consumer sentiment and contractor reports point to pressure on future demand and project activity. Readers should not treat the sales total as proof that every part of the industry is growing equally; it covers a specific category of dealers and a rolling year.
For homeowners, higher mortgage rates and weaker confidence may affect decisions about moving, financing renovations or starting discretionary work. For contractors, the rise in reports of difficulty closing new business suggests that converting inquiries into booked work is a concern. The continued share of jobs postponed or cancelled can also complicate scheduling and revenue planning, although the update does not quantify the financial effect.
Products Worth Considering
Samsung 65-Inch The Frame Pro Neo QLED 4K TV (2026) Bundle with Modern Brown Bezel, HDMI Cables, and Home Theater Guide
Philips Hue White and Color Ambiance A19 Smart Bulb Starter Kit, 2-Pack
Dyson Big Ball Multi Floor Canister Vacuum, Yellow
As an affiliate, we earn on qualifying purchases.
The Indicators Behind HIRI’s Update
HIRI describes its Economic & Industry Update as a monthly report covering economic conditions, housing data and home-improvement market indicators. The October edition, reported by Hardware Retailing on November 4, 2026, brings together sales data through August, mortgage and confidence readings for September, and contractor results for the third quarter.
The time periods matter when comparing the numbers. Dealer sales are measured over a rolling 12-month window; mortgage and confidence figures refer to September; contractor postponements compare Q3 2026 with Q2 2026 and Q3 2025. The source describes the $520.5 billion result as the highest in the 25 months tracked, but gives no longer-term comparison in the provided summary.
Limits of the Published Summary
The source article does not provide the full report’s underlying tables, survey sample size, contractor respondent profile or detailed methodology. It also does not explain how contractors were classified as reporting sales challenges or whether the postponed-job figure represents all contractors surveyed or a subset.
It remains unclear how the indicators will affect upcoming sales, whether the September mortgage-rate increase continued after that month, or whether contractor postponements led to cancellations or later rescheduling. HIRI’s summary identifies trends but does not establish causal links between rates, confidence, dealer sales and contractor performance.
Further Data Will Test the Trend
HIRI’s update is part of a monthly series, so later editions can show whether dealer sales remain elevated and whether mortgage rates and consumer confidence change. The next contractor readings will help indicate whether the Q3 reduction in postponed or cancelled jobs continues, and whether reports of trouble closing new business rise or ease.
The full October update is available through HIRI membership, according to the source article. Until more detail or subsequent data are published, the figures offer a snapshot across different reporting periods rather than a forecast of the market’s direction.
Key Questions
What did HIRI report about dealer sales?
HIRI said rolling 12-month sales at building materials, garden equipment and supplies dealers reached $520.5 billion in August 2026, the highest level in the 25 months tracked.
How high was the 30-year mortgage rate?
The report put the rate at 6.86% in September 2026. It was the seventh consecutive monthly increase and the highest reading since January 2025.
What challenges did contractors report?
Among contractors reporting sales challenges, 45% cited difficulty closing new business, compared with 23% in Q2 2026. Overall, 54% postponed or cancelled scheduled jobs in Q3 2026.
Were postponed or cancelled jobs increasing?
The share fell to 54% in Q3 2026 from 60% in Q2, but remained above the 30% reported for Q3 2025. The summary does not say how many postponed jobs were later rescheduled.
Does the report explain what caused these trends?
No. The published summary reports sales, mortgage, confidence and contractor figures but does not establish that one caused another. It also omits detailed methods and survey information.
Source: hardwareretailing.com
