Consumer

Home Depot Sales Drop for Fifth Quarter on Weak Demand

  • Retailer expects a 1% drop in comparable sales this year
  • High mortgage rates are impacting demand for home improvement

Home Depot Comparable Sales Decline for Fifth Straight Quarter

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Home Depot Inc. reported a fifth straight comparable sales decline, underscoring a drop in demand for house improvement due to high mortgage rates and a slowdown in construction.

While mortgage rates have come down from October’s 23-year high, they continue to impact home sales and construction. In January, new-home construction sank by the most since the onset of the pandemic, indicating that any pickup in housing demand will be delayed until borrowing costs come down further.