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The Home Improvement Research Institute’s October 2026 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 same report records a 6.86% 30-year mortgage rate in September, falling consumer confidence and continued difficulty for contractors closing business and keeping scheduled jobs.
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 covered by its tracking. Its October economic update also records rising mortgage rates, falling consumer confidence and persistent contractor business challenges, giving the home improvement industry a mixed picture of demand and operating conditions.
The report says the 30-year mortgage rate rose to 6.86% in September, marking a seventh consecutive monthly increase and its highest reading since January 2025. The Conference Board’s Consumer Confidence Index fell 7.6% to 81.9 in September, the lowest reading in the 25 months tracked. These indicators provide economic context for household spending and housing activity, though the update does not establish that either directly caused the dealer sales result.
Contractors also reported difficulty converting potential work into booked projects. Among contractors who said they faced sales challenges, 45% cited closing new business, compared with 23% in the second quarter of 2026. The report does not say what share of all contractors this represents; the percentage applies to the group reporting sales challenges.
Project disruptions remained common. HIRI reports that 54% of contractors postponed or cancelled scheduled jobs in Q3 2026. That was down from 60% in Q2 2026 but still higher than the 30% recorded in Q3 2025. The figures describe reported contractor experiences and do not specify the number or value of affected jobs.
Strong Sales Meet Project Delays
The figures point to a mixed operating environment for home improvement businesses. Dealer sales reached the highest level in HIRI’s 25-month tracking period, while borrowing costs and weaker consumer confidence may weigh on housing-related decisions. The update presents these measures side by side; it does not quantify how much mortgage rates or confidence affected sales.
For contractors and suppliers, the reported increase in difficulty closing new business and the continued frequency of delayed or cancelled jobs signal that strong aggregate dealer sales do not necessarily mean every part of the market is equally healthy. The data may matter to businesses planning inventory, staffing and project schedules, but the report excerpt does not provide forecasts or recommendations.
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What HIRI’s Monthly Update Tracks
HIRI’s Economic & Industry Update is a monthly report covering general economic, housing market and home improvement data. It evaluates economic indicators and their possible influence on the home improvement market. The October 2026 edition includes the sales, mortgage-rate, consumer-confidence and contractor figures reported here.
The comparisons use distinct periods: dealer sales are a rolling 12-month total for August; the mortgage rate and confidence reading are for September; and the job-delay figures compare Q3 2026 with Q2 2026 and Q3 2025. Keeping those time frames separate is important: the reported sales high is not a single-month sales figure, and the contractor percentages refer to scheduled jobs postponed or cancelled.
“The October 2026 HIRI Economic & Industry Update”
— Home Improvement Research Institute
Limits of the Reported Figures
The source material does not provide the full HIRI report, its methodology, sample sizes or detailed category breakdowns. It is therefore unclear how the $520.5 billion total divides among building materials, garden equipment and supplies dealers, or how contractor responses vary by trade, location or business size.
The contractor sales-challenge figure is specifically drawn from contractors reporting such challenges, but the excerpt does not give that group’s size. It also does not identify why jobs were postponed or cancelled. The update reports economic indicators alongside industry data without proving a causal link between mortgage rates, confidence, sales and contractor conditions.
Full HIRI Report and Later Data
HIRI’s October update is available through the institute’s membership program, according to the source report; the complete data and methodology would provide more detail on the trends. Subsequent monthly updates can show whether dealer sales remain at elevated levels and whether mortgage rates, consumer confidence and contractor project disruptions change. No specific forecast or date for a further development is provided in the source material.
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 was the highest level in the 25 months tracked.
How high was the 30-year mortgage rate?
The rate reached 6.86% in September 2026, its seventh straight monthly increase and its highest level since January 2025, according to the update.
What did the report say about contractor jobs?
54% of contractors postponed or cancelled scheduled jobs in Q3 2026. That was lower than Q2 2026’s 60%, but higher than Q3 2025’s 30%.
Does the update explain why sales and contractor conditions differ?
No. The figures show strong tracked dealer sales alongside reported contractor challenges, but the source does not establish a cause or explain how the trends vary across businesses or regions.
Source: hardwareretailing.com
