When mortgage rates are so high that no one can buy a house or refinance a mortgage, people also stop grouting, painting, and tiling—all the do-it-yourself renovations necessary to shape up your house for sale.
This is leading to serious pain for retailers. Lowe’s reported Wednesday a 5.1% comparable sales decline in its second quarter ending in early August. It expects retail operation sales to fall 3.5% to 4% this year compared to previous estimates of a 2% to 3% decline. The DIY slowdown at Lowe’s mirrors that of rival Home Depot, which slashed its sales guidance after weakened second-quarter sales. It now expects comparable sales to fall 3% to 4% this year, a humbling prospect for the largest retail home improvement and construction supply company in the world, compared to its initial prediction of a 1% decline.
