Home Depot Warns of a Frozen Housing Market as Homeowners Delay Moving and Prioritize Renovations

Home Depot is warning that the U.S. housing market remains largely frozen as homeowners choose to renovate rather than move. CFO Richard McPhail described housing turnover as being at its lowest level relative to the housing stock, citing persistently high mortgage rates. The 30-year fixed mortgage rate stood at 7.24% for the week of Oct. 29, according to Freddie Mac.
The slowdown in home sales has weakened demand for appliances, flooring, lighting, and other products typically purchased by new homeowners. However, long-term homeowners are helping offset some of that weakness through renovation projects, with Home Depot reporting positive comparable sales in its latest quarter.
The company also highlighted how retirees funding renovations through large pretax 401(k) withdrawals could face higher Medicare premiums through IRMAA surcharges two years later. For 2026, the first income threshold for a single filer is $109,000. Spreading withdrawals across different tax years or using savings, qualified Roth IRA withdrawals, or home equity financing may help retirees manage the additional tax and Medicare costs.