The Brief — Remodeling — 2026-08-07

MARKET & BUSINESS

Residential Construction Spending Slips as Remodeling Activity Weakens

Private residential construction spending declined 0.3% in June, with substantial downward revisions to remodeling spending significantly altering the sector's recent trajectory.

Why it matters: Direct indicator that remodeling demand is contracting; plan accordingly for pipeline and staffing.

U.S. Economy Expanded at a Slower Pace in the Second Quarter of 2026

Real GDP growth slowed in Q2 as pullbacks in government spending and slower investment growth offset consumer spending gains.

Why it matters: Slower economic growth typically reduces discretionary spending on home improvement projects.

Housing's Share of GDP Moves Lower in the Second Quarter

Housing's share of GDP was 15.8% in Q2 2026, down from 15.9% in Q1 and at the lowest level since 2019.

Why it matters: Housing sector contraction signals reduced overall opportunity in your market segment.

INTEREST RATES & FINANCING

Mortgage Rates Climb Again as Iran Conflict Re-escalates

The 30-year fixed-rate mortgage averaged 6.54% in July, up 5 basis points from June, with nearly 50 basis points of increases since Middle East conflict began.

Why it matters: Higher mortgage rates reduce homeowner equity and refinance activity, constraining remodeling budgets.

LABOR & HIRING

Construction Job Openings Rising

The number of open positions in the construction sector increased in June, though current levels remain measurably down from three years ago due to declines in housing activity.

Why it matters: Job openings remain competitive; expect continued pressure on wage and recruitment costs despite overall sector weakness.