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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 hit $520.5 billion in August, the highest level in its 25-month tracking period. The report also records a seventh consecutive monthly increase in 30-year mortgage rates and greater difficulty closing new business among contractors reporting sales 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 more difficulty closing new business. The figures appear in HIRI’s October 2026 Economic & Industry Update, released November 4.
The report says the 30-year mortgage rate reached 6.86% in September, marking its seventh consecutive monthly increase and its highest level since January 2025. The Conference Board’s Consumer Confidence Index fell 7.6% to 81.9 in September, its lowest reading in the same 25-month tracking period.
HIRI also found that among contractors who reported sales challenges, 45% cited closing new business as a difficulty, compared with 23% in the second quarter of 2026. Separately, 54% of contractors postponed or cancelled scheduled jobs in the third quarter. That was down from 60% in Q2 2026 but above the 30% reported for Q3 2025.
HIRI describes the update as a monthly report examining general economic, housing-market and home-improvement data, including how economic indicators may affect the sector. The published summary provides these five figures but does not include the full report’s methodology or detailed breakdowns.
Sales Growth Meets Market Pressures
The figures present a mixed picture for home-improvement businesses. Record-high tracked sales indicate that the rolling annual total at the specified dealer category remained strong through August. At the same time, higher borrowing costs, weaker consumer confidence and contractor reports of sales-closing difficulties point to pressures that could affect demand and project timing.
The contractor figures also show why sales totals alone do not describe conditions across the industry. More than half of contractors reported postponing or cancelling scheduled work in Q3, even though that share improved from the previous quarter. The gap between the Q3 2025 and Q3 2026 readings suggests interruptions remained elevated compared with a year earlier, based on HIRI’s reported survey figures.
These indicators matter to retailers, suppliers and contractors planning inventory, staffing and sales activity. However, the summary does not establish that mortgage rates or consumer confidence caused the contractor challenges, or that the reported sales level predicts future performance.
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What HIRI’s Measures Cover
The update combines economic, housing and home-improvement indicators rather than reporting a single measure of industry performance. The $520.5 billion figure is a rolling 12-month sales total for building materials, garden equipment and supplies dealers, not sales for August alone. HIRI identifies it as the highest level in the 25 months included in its tracking.
The mortgage-rate and consumer-confidence figures refer to September 2026, while the contractor job postponement and cancellation data refer to Q3. The sales-challenge comparison is between Q2 and Q3 2026. Keeping those periods distinct matters: the statistics describe different parts of the market and do not all measure the same activity or time window.
Hardware Retailing’s November 4 report summarizes five findings from HIRI’s October update and says the full report is available to HIRI members. The available summary does not specify the underlying survey sample or explain how contractor responses were collected.
“The update covers general economic data, housing market data and home improvement market data, with evaluations of key economic indicators and their influence on the home improvement market.”
— The Home Improvement Research Institute, as described by Hardware Retailing
Limits of the Published Summary
The available account does not include the full report, data methodology or survey sample details. It is not clear how many dealers or contractors contributed to the figures, how contractor sales challenges were defined, or whether the findings represent all businesses in the sector.
HIRI’s summary reports that sales reached a tracked-period high, but does not provide the monthly path behind the rolling 12-month figure or a year-over-year comparison. It also does not establish what drove the rise in mortgage rates, fall in confidence or contractor job disruptions. The figures describe conditions during specified periods; they do not, on their own, show what will happen next.
Full Update and Future Readings
HIRI’s economic update is issued monthly, so subsequent releases may show whether the reported mortgage-rate, confidence and contractor trends continued. The next relevant comparison will be whether dealer sales remain near the August level and whether contractor postponements and sales-closing difficulties change in later quarters.
Hardware Retailing says readers can access the full October update by becoming HIRI members. Until the complete report or later data are available, the summary offers a snapshot of the market rather than a forecast.
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 in August 2026. It said that was the highest level in the 25 months tracked.
How did mortgage rates change?
The 30-year mortgage rate rose to 6.86% in September 2026, its seventh consecutive monthly increase and highest level since January 2025, according to the summary.
What contractor difficulties did the report identify?
Among contractors reporting sales challenges, 45% cited closing new business, up from 23% in Q2 2026. HIRI also reported that 54% postponed or cancelled scheduled jobs in Q3, down from 60% in Q2 but above 30% in Q3 2025.
Does the report show why contractor jobs were postponed?
No cause is identified in the published summary. It reports the share of contractors who postponed or cancelled scheduled work but does not say what drove those decisions.
Where can readers find the full HIRI update?
Hardware Retailing says the full October 2026 update is available through HIRI membership. Its summary does not provide the report’s full methodology or survey details.
Source: hardwareretailing.com
