According to CNBC, elevated mortgage rates are keeping many U.S. homeowners in place and making home equity loans and HELOCs too expensive for some borrowers, which is slowing spending on renovations and other big-ticket projects. Homeowners originated nearly 20% more second mortgages or HELOCs in the second quarter than in the first quarter, but experts said much of that borrowing is being used to cover expenses rather than fund improvements.

Facet chief investment officer Tom Graff said rising rates are making home equity more costly to tap and are weighing on consumer spending, especially home renovations. He also said consumer spending is already lagging as a driver of GDP growth and that spending on data centers is currently doing much of the work of supporting the economy. Angie Hicks, co-founder and chief customer officer of Angi, said homeowners are holding onto 2% to 3% mortgage rates and are increasingly treating their current homes as forever homes, with many prioritizing maintenance over major remodels.

Angi data showed 60% of consumers are now putting off projects and switching to maintenance. Datavations CEO Philip Odelfelt said big-ticket renovation categories fell 10% to 28% at Home Depot and Lowe's from September 2025 through August 2026 versus a year earlier, while shower stalls, kits and enclosures dropped 21% in sales and 28% in units. Bathtub sales fell 10% and units declined 12%, and lower-priced items such as pull-down kitchen faucets were down about 3%.