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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 level in its 25-month tracking period. The report also records a 6.86% 30-year mortgage rate in September and continued contractor difficulties, including postponed jobs and trouble closing new business.
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 points to rising borrowing costs, falling consumer confidence and continuing contractor difficulties that may affect demand and scheduled work across the home improvement market.
The sales figure covers a rolling 12-month period ending in August 2026, rather than sales made in August alone. HIRI’s published summary says the measure reached its highest level during the 25-month tracking period. It does not provide a year-over-year comparison or break the total into product categories in the material available for this report.
Mortgage costs moved higher: the 30-year mortgage rate reached 6.86% in September, its seventh consecutive monthly increase and highest reading since January 2025, according to HIRI’s summary. The Conference Board’s Consumer Confidence Index fell 7.6% to 81.9 in September, its lowest reading in the same 25-month period. These indicators describe different parts of the economy; the update does not establish that either caused the sales or contractor results.
Contractor responses show both improvement and continuing strain. Among contractors reporting sales challenges, 45% cited difficulty closing new business, compared with 23% in Q2 2026. Separately, 54% said they postponed or cancelled scheduled jobs in Q3 2026. That was down from 60% in Q2, but remained above the 30% reported for Q3 2025.
How Rates and Delays Affect Home Improvement
The figures give retailers and contractors a mixed picture of market conditions. The record rolling sales measure indicates that the dealer category had a large volume of sales across the measured 12-month period, while higher mortgage rates and weaker consumer confidence point to potential pressure on household spending and housing activity. HIRI’s summary does not quantify how those indicators translated into home improvement purchases.
For contractors, the increase in reported difficulty closing new business may signal a tougher sales environment for some firms. The high share postponing or cancelling scheduled jobs also matters to customers planning renovations and to businesses managing labor, inventory and cash flow. Although the postponement figure improved from the prior quarter, its level remained substantially above the same quarter a year earlier.
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What HIRI’s Monthly Update Tracks
HIRI’s Economic & Industry Update is a monthly report that covers general economic, housing-market and home improvement data. It evaluates selected economic indicators and their possible influence on the home improvement market. The October edition was described in a November 4 report by Hardware Retailing.
The update’s headline measures use different dates and time frames: dealer sales are a rolling 12-month figure through August, mortgage rates and consumer confidence are September readings, and contractor postponements refer to Q3. Keeping those periods distinct is necessary when comparing the indicators. HIRI’s published summary presents five fast facts, while access to the full update is offered through HIRI membership.
Details Behind the Headline Figures
The available summary does not include the full methodology, survey sample size or question wording for the contractor results. It also does not explain whether the 45% figure among contractors reporting sales challenges represents all contractors or only respondents who identified a sales challenge. The 54% postponement figure is reported for Q3, but the summary does not give the number of jobs affected or the reasons for delays and cancellations.
HIRI’s figures alone do not establish why sales reached the reported high, why mortgage rates rose, or whether weaker confidence caused changes in home improvement spending. No forecast, regional breakdown or subsequent-month data is included in the source material, so the direction of the market after August and September remains uncertain.
Full Report and Upcoming Indicators
HIRI says readers can access the full October update by becoming members. That report may provide additional detail on the underlying data and the institute’s evaluation of economic indicators. The next useful developments will be later sales, mortgage-rate and confidence readings, along with new contractor survey results that can show whether the Q3 pattern continued.
Until those data are available, the reported record should be read as a rolling 12-month sales measure, not a forecast or proof that every part of the home improvement market is growing. The source material does not specify a release date for the next update.
Key Questions
What sales figure did HIRI report?
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 tracked.
What happened to mortgage rates?
The 30-year mortgage rate reached 6.86% in September 2026, marking its seventh consecutive monthly increase and its highest level since January 2025, according to HIRI’s summary.
Did fewer contractors postpone or cancel jobs?
Yes, compared with the previous quarter. 54% of contractors reported postponing or cancelling scheduled jobs in Q3 2026, down from 60% in Q2, but above the 30% reported for Q3 2025.
How many contractors reported difficulty closing new business?
Among contractors reporting sales challenges, 45% cited difficulty closing new business in the latest figure, up from 23% in Q2 2026. The published summary does not provide the survey sample size or further methodology.
Does the update explain what caused these trends?
No. The summary reports the sales, rate, confidence and contractor figures but does not establish that one caused another or provide a forecast for the coming months.
Source: hardwareretailing.com
