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
HIRI’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 reading in its 25-month tracking period. The report also records a seventh monthly rise in 30-year mortgage rates, falling consumer confidence and continuing contractor difficulties winning business and keeping scheduled jobs.
The Home Improvement Research Institute (HIRI) said its October 2026 economic update found rolling 12-month sales reached $520.5 billion at building materials, garden equipment and supplies dealers in August, the highest level in the report’s 25 months of tracking. The update also describes rising mortgage rates, weaker consumer confidence and contractors continuing to face difficulty closing business and keeping scheduled jobs.
The sales figure covers a rolling 12-month period ending in August 2026, rather than sales in August alone. HIRI’s report says the $520.5 billion reading was the highest observed in the 25-month period it tracked. The source material does not provide a year-over-year comparison or a breakdown by product category, so the figure should not be read as evidence that every segment of the home improvement market grew at the same rate.
Borrowing costs moved in the opposite direction for prospective homebuyers and borrowers. The 30-year mortgage rate reached 6.86% in September, marking its seventh consecutive monthly increase and its highest level since January 2025, according to the update. Separately, the Conference Board’s Consumer Confidence Index fell 7.6% to 81.9 in September, its lowest reading in HIRI’s 25 months of tracking. Those indicators offer economic context for home improvement demand, but the report excerpt does not establish that either directly caused a change in sales.
Contractor survey results point to ongoing business pressures. Among contractors who reported sales challenges, 45% cited closing new business, up from 23% in the second quarter of 2026. In the third quarter, 54% postponed or cancelled scheduled jobs. That was an improvement from 60% in Q2 2026, but remained above the 30% reported for Q3 2025. The provided report summary does not specify the survey sample size or explain the reasons for cancellations.
Sales Strength Meets Contractor Pressure
The update presents a mixed picture for businesses that sell building materials and home improvement supplies. A record high in the tracked rolling sales series points to substantial activity across the dealer category, while the contractor figures show that strong aggregate sales do not necessarily mean every business is finding customers or completing planned work with ease.
Mortgage rates and consumer confidence matter because they can shape household decisions about buying homes, financing renovations and taking on discretionary projects. HIRI’s figures show those measures worsening during the period covered, but the report excerpt does not quantify their effect on home improvement spending. For retailers, suppliers and contractors, the key distinction is between the sector’s overall sales total and the uneven conditions individual firms may face.
Products Worth Considering
Dyson Cyclone V10 Origin Cordless Vacuum
Dyson V8 Cyclone Cordless Vacuum
Philips Hue White and Color Ambiance A19 Smart Bulb Starter Kit, 2-Pack
As an affiliate, we earn on qualifying purchases.
How the Indicators Fit Together
HIRI describes its Economic & Industry Update as a monthly report covering general economic data, housing market data and home improvement market data, along with evaluations of economic indicators and their influence on the sector. The October edition brings together sales data through August, mortgage and confidence readings for September, and contractor results for the third quarter.
The comparison periods differ across the figures. The dealer sales measure is a rolling 12-month total and is ranked against the 25 months tracked; the confidence index and mortgage rate refer to September; and contractor job postponements compare Q3 2026 with Q2 2026 and Q3 2025. Keeping those periods distinct is necessary: the reported high sales total does not cancel out the weaker confidence reading or prove that contractor challenges have eased.
Limits of the Reported Figures
The source summary does not include the complete report, its underlying tables or the methodology for the contractor survey. It is not clear how many contractors responded, how the participants were selected, or whether the reported sales-challenge percentages represent all contractors or only respondents identifying a challenge. The figures therefore describe the results as presented by HIRI, but do not establish how broadly they apply across the industry.
The summary also does not give the prior sales total, inflation adjustment, category-level results or a forecast. It does not identify why scheduled contractor jobs were postponed or cancelled, or whether the mortgage-rate and confidence changes affected the sales measure. Any explanation linking these indicators to one another would go beyond the information provided.
Full Update and Future Readings
HIRI says readers can access the full October update by becoming a member. Further monthly reports can show whether dealer sales remain near the August high and whether mortgage rates, consumer confidence and contractor job disruptions continue along the same paths. The source material does not announce a specific date for the next report or provide a forecast.
For now, the reported findings offer a snapshot rather than a settled outlook: tracked dealer sales reached a period high, while several indicators relevant to housing and contractor activity were less favorable. New data will be needed to determine whether that combination persists.
Key Questions
What did HIRI report about dealer sales?
HIRI reported $520.5 billion in rolling 12-month sales at building materials, garden equipment and supplies dealers through August 2026. It was the highest level in the 25 months covered by its tracking series.
How high did the 30-year mortgage rate rise?
The rate reached 6.86% in September 2026, according to the update. HIRI described this as the seventh consecutive monthly increase and the highest reading since January 2025.
What challenges did contractors report?
Among contractors reporting sales challenges, 45% cited closing new business, compared with 23% in Q2 2026. HIRI also reported that 54% postponed or cancelled scheduled jobs in Q3, down from 60% in Q2 but above 30% in Q3 2025.
Does the report show that higher mortgage rates caused weaker home improvement demand?
No. The summary reports mortgage rates, consumer confidence, dealer sales and contractor survey results, but does not establish a direct causal link between them or quantify the effect of rates on home improvement demand.
Source: hardwareretailing.com
