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The Home Improvement Research Institute’s October 2026 economic update reported 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 noted rising mortgage rates, falling consumer confidence and persistent contractor difficulties, including postponed or cancelled jobs.
The Home Improvement Research Institute (HIRI) reported record sales in its tracked series for building materials, garden equipment and supplies dealers, even as mortgage rates rose, consumer confidence fell and contractors faced difficulty closing new business. Its October 2026 economic update, released November 4, brings together indicators that point to contrasting conditions across the home improvement market.
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 covered by the report. The figure is a rolling 12-month total; HIRI’s summary does not provide a year-over-year comparison or break out sales by product category.
The 30-year mortgage rate rose to 6.86% in September, marking its seventh consecutive monthly increase and its highest level since January 2025, according to HIRI’s summary. Meanwhile, the Conference Board’s Consumer Confidence Index fell 7.6% to 81.9 in September, its lowest reading in the 25 months tracked.
Contractors reported mixed developments. Among those citing sales challenges, 45% said closing new business was a challenge, up from 23% in the second quarter of 2026. At the same time, 54% said they postponed or cancelled scheduled jobs in the third quarter, down from 60% in the second quarter but above the 30% reported for the third quarter of 2025.
Sales Gains Meet Contractor Strain
The combination of high tracked sales and reported project disruption suggests that industry-wide sales totals do not necessarily describe conditions for every contractor or customer. Contractors’ difficulty winning new work, alongside continued job postponements and cancellations, may affect project timing and business planning. HIRI’s summary does not establish that mortgage rates or consumer confidence caused those contractor trends, so the figures should be read as concurrent indicators rather than proof of a direct relationship.
For homeowners considering renovations, rising borrowing costs may be relevant to financing decisions, while contractor reports point to ongoing uncertainty around scheduled work. The update does not provide local market data or predict how these conditions will change, limiting what can be inferred for an individual project.
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How the Indicators Compare
HIRI describes its Economic & Industry Update as a monthly report covering general economic, housing-market and home improvement data, along with assessments of key indicators and their influence on the home improvement market. The October edition presents measures from different periods: dealer sales through August, mortgage rates and consumer confidence in September, and contractor responses for the third quarter.
The comparisons in the summary show different trajectories. The mortgage rate had increased for seven straight months, while contractor postponements or cancellations eased from Q2 to Q3 2026 but remained higher than the Q3 2025 share. HIRI’s release identifies the sales figure as a record within its 25-month tracking period; it does not claim an all-time industry record.
“Rolling 12-month sales at building materials, garden equipment and supplies dealers reached $520.5 billion in August 2026.”
— Home Improvement Research Institute, October 2026 HIRI Economic & Industry Update, as summarized by Hardware Retailing
What the Summary Leaves Open
The published summary does not include the full methodology, sample sizes or detailed breakdowns behind the contractor survey figures. It also does not specify the geographic or product-level distribution of the reported dealer sales, or provide a comparison baseline for the $520.5 billion total beyond stating that it was the highest in the 25 months tracked.
HIRI’s figures show that mortgage rates, confidence and contractor activity moved alongside sales, but the summary does not establish why these changes occurred or whether one caused another. The full update may contain additional explanation, but the source says access requires HIRI membership.
Full Update and Future Readings
HIRI describes the update as a monthly report, so subsequent editions are expected to provide newer economic, housing and home improvement indicators. The next readings can show whether dealer sales remain near the reported level and whether mortgage rates, consumer confidence and contractor job disruptions continue along their recent paths; the available summary does not give a release date or forecast.
Readers seeking the complete analysis can consult HIRI’s October 2026 update through the institute’s membership access. Until further data are available, the reported figures describe conditions across several recent periods rather than a single, fully synchronized snapshot.
Key Questions
What sales figure did HIRI report?
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 climbed to 6.86% in September 2026. HIRI said this was the seventh consecutive monthly increase and the highest level since January 2025.
What challenges did contractors report?
Among contractors reporting sales challenges, 45% cited closing new business, up from 23% in Q2 2026. In Q3, 54% reported postponing or cancelling scheduled jobs, compared with 60% in Q2 and 30% in Q3 2025.
Did HIRI say rising mortgage rates caused contractor difficulties?
No. The available summary reports these indicators but does not establish a direct cause-and-effect relationship between mortgage rates and contractor challenges.
Where can readers find the full report?
HIRI says readers can access the full October 2026 Economic & Industry Update by becoming a member.
Source: hardwareretailing.com
