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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. The report also records a seventh consecutive monthly rise in 30-year mortgage rates, a sharp decline in consumer confidence and ongoing contractor sales 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 rose and contractors reported difficulty closing new business. The figures appear in HIRI’s October 2026 Economic & Industry Update, released November 4, which examines economic, housing and home improvement indicators.
The report says the 30-year mortgage rate rose to 6.86% in September, marking its seventh consecutive monthly increase and its highest level since January 2025. It also records a decline in consumer sentiment: the Conference Board’s Consumer Confidence Index fell 7.6% to 81.9 in September, the lowest reading in the 25 months covered by HIRI’s update.
Contractor survey results point to continued challenges in finding and retaining work. Among contractors who reported sales challenges, 45% cited closing new business, up from 23% in the second quarter of 2026. HIRI also reported that 54% postponed or cancelled scheduled jobs in Q3 2026. That share was lower than the 60% reported in Q2, but remained well above the 30% recorded in Q3 2025.
The update places the sales figure alongside these housing and business indicators rather than presenting it as evidence that all parts of the home improvement market are improving. The figures measure different things: dealer sales over a rolling 12-month period, mortgage rates and confidence in September, and contractors’ reported experiences during the quarter.
Sales Growth Meets Contractor Strain
The combination of record-period dealer sales and worsening indicators for some contractors offers a mixed picture for businesses and households connected to home improvement. The sales total shows the scale of activity reported across building materials, garden equipment and supplies dealers, while the contractor figures suggest that securing new work and keeping scheduled projects on track remain difficult for many respondents.
Higher borrowing costs may also matter to customers weighing renovation plans or financing a home purchase. HIRI’s figures show mortgage rates continuing to rise through September, while consumer confidence fell. The report does not establish that either trend caused contractors’ sales or cancellations, but together they describe economic conditions that companies may need to account for when planning demand, staffing and project schedules.
For readers, the key point is that a large sales total does not necessarily mean that every business or project is experiencing the same conditions. Contractor responses indicate persistent disruption despite an improvement from the previous quarter in the share postponing or cancelling jobs.
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The Indicators Behind HIRI’s Update
HIRI describes its Economic & Industry Update as a monthly report covering general economic data, housing market information and home improvement market indicators. Its October edition draws on measures with different reporting periods, including rolling 12-month dealer sales through August, September mortgage rates and consumer confidence, and contractor responses for the third quarter.
The sales figure is a rolling 12-month total, not a single month’s sales result. HIRI identifies August 2026 as the highest level in the 25 months tracked. The source report does not provide a year-over-year growth rate or a comparison with a longer historical period, so the record claim applies to the tracked 25-month window.
The contractor comparisons also distinguish between separate quarters. The share reporting postponed or cancelled jobs decreased from Q2 2026 to Q3 2026, but the Q3 share was still higher than the same quarter one year earlier. HIRI’s source article summarizes five findings from the update and directs readers to the full report through HIRI membership.
Limits of the Reported Data
The source article provides headline figures but does not include the full report’s methodology, sample size or detailed breakdowns by contractor type, location or project category. It is therefore unclear how widely the contractor responses represent the broader industry or which kinds of jobs were most affected by delays and cancellations.
The figures also do not establish why dealer sales reached their tracked-period high while confidence weakened and mortgage rates climbed. HIRI’s summary does not identify causes, forecast future sales or state whether contractor challenges are expected to continue. The reported 45% applies specifically to contractors who said they faced sales challenges; it should not be read as the share of all contractors.
The Next Monthly Economic Reading
The next point to watch is HIRI’s subsequent monthly update, which can show whether dealer sales, mortgage rates, consumer confidence and contractor conditions changed after the periods covered here. Until then, the October report offers a snapshot rather than a forecast: sales reached a tracked-period high through August, while the latest reported housing and contractor indicators showed ongoing pressure.
HIRI says readers can access the full Economic & Industry Update by becoming members. Further detail from that report, including its methods and any additional market breakdowns, was not included in the source article.
Key Questions
What did HIRI report about home improvement-related 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 did mortgage rates change?
The 30-year mortgage rate reached 6.86% in September 2026, its seventh straight monthly increase and its highest level since January 2025, according to the update.
What challenges did contractors report?
Among contractors reporting sales challenges, 45% cited closing new business, compared with 23% in Q2 2026. HIRI also said 54% postponed or cancelled scheduled jobs in Q3, down from 60% in Q2 but above 30% in Q3 2025.
Does the report explain why sales were high while other indicators weakened?
No cause is given in the source summary. The report presents sales, mortgage rates, consumer confidence and contractor responses as separate indicators; it does not establish that one caused another.
Source: hardwareretailing.com
