The Brief — Remodeling — 2026-09-04

MARKET CONDITIONS

Mortgage Rates Climb as Global Forces Push Yields Higher 30-year fixed-rate mortgages averaged 6.67% in August, up 13 basis points from July and 60+ basis points since Middle East tensions began. Why it matters: Higher borrowing costs directly reduce client purchasing power and project financing capacity, compressing your addressable market.

Private Residential Construction Spending Continues to Weaken Private residential construction spending fell 1.3% month-over-month and 7.3% year-over-year in July, marking four consecutive monthly declines. Why it matters: Weakening overall construction activity signals tightening demand for remodeling projects as homeowners delay discretionary spending.

Single-Family AD&C Lending Falls Back in Q2 Single-family construction and land development loans outstanding declined 0.4% in Q2. Why it matters: Tighter construction lending reduces available financing for major remodel projects your clients might otherwise undertake.

MARKET OPPORTUNITY

Share of New Homes with Patios Dips to a Six-Year Low Only 60.5% of new single-family homes started in 2025 included patios, the lowest share since 2019. Why it matters: Existing homeowners seeking outdoor living spaces represent a distinct remodeling opportunity as new construction scales back this amenity.