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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 its 25-month tracking period. At the same time, mortgage rates rose, consumer confidence fell, and contractors reported difficulty closing new business and keeping scheduled jobs on track.
The Home Improvement Research Institute (HIRI) has released its October 2026 Economic & Industry Update, reporting 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 covered. The report also tracks rising mortgage rates, a sharp drop in consumer confidence and continued disruption to contractors’ scheduled work, offering a mixed picture of conditions affecting the home improvement market.
The August sales figure covers a rolling 12-month period, rather than sales in August alone. HIRI’s report says it was the highest reading in the 25 months it tracked. The source summary does not provide a year-over-year comparison or break the total down by product category, so it does not establish which parts of the market drove the result.
The 30-year mortgage rate rose to 6.86% in September, its seventh consecutive monthly increase and its highest level since January 2025, according to the report. Separately, the Conference Board’s Consumer Confidence Index fell 7.6% to 81.9 in September, its lowest reading in HIRI’s 25-month tracking period.
Contractor responses point to pressure on both sales and project schedules. Among contractors reporting sales challenges, 45% cited closing new business, up from 23% in Q2 2026. HIRI also reported that 54% of contractors postponed or cancelled scheduled jobs in Q3, down from 60% in Q2 but above the 30% reported for Q3 2025.
Sales Growth Meets Contractor Strain
The report puts a strong sales total alongside indicators that may complicate future demand and project delivery. Higher mortgage rates can affect housing activity and borrowing costs, while falling confidence may influence household decisions about spending. The figures alone do not show that either trend caused changes in home improvement purchases, but they provide relevant conditions for businesses and homeowners to monitor.
Contractor survey results show that scheduled work remains vulnerable to postponements or cancellations: more than half of surveyed contractors reported that outcome in Q3. Although the share fell from Q2, it remained substantially above the same quarter a year earlier. The rising share citing difficulty closing new business also signals a change in the challenges contractors report. The update does not specify the reasons for cancellations or quantify their financial effects.
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How HIRI Tracks Market Conditions
HIRI describes its Economic & Industry Update as a monthly report covering general economic, housing-market and home-improvement data. It evaluates economic indicators and their potential influence on the home improvement market. The October edition presents figures from different periods: dealer sales through August, mortgage rates and consumer confidence in September, and contractor responses for Q3.
The sales statistic concerns building materials, garden equipment and supplies dealers and is measured across a rolling 12-month window. The confidence comparison is based on HIRI’s 25 months of tracking. Contractor comparisons use Q2 2026 and Q3 2025 as reference points. These measures describe separate parts of the market and should not be treated as a single direct measure of industry performance.
“Rolling 12-month sales at building materials, garden equipment and supplies dealers reached $520.5 billion in August 2026.”
— Home Improvement Research Institute (HIRI), as summarized by Hardware Retailing
What the Indicators Do Not Show
The source summary does not provide the full report’s methodology, sample sizes or detailed definitions for the contractor measures. It is not clear how contractors were selected, how many responded, or whether the reported job postponements and cancellations reflect the same respondents across quarters.
HIRI’s figures also do not identify what drove the record tracked sales total, explain why contractors postponed or cancelled jobs, or establish a causal link between mortgage rates, consumer confidence and home improvement spending. The sales figure’s comparison with the same period in 2025 is not included in the provided material. Those limits mean the update shows a combination of market indicators, not a complete explanation of the forces behind them.
Further Detail in HIRI’s Full Update
HIRI’s October Economic & Industry Update is the next source for readers seeking the report’s underlying data and analysis. Hardware Retailing says readers can access the full update by signing up for HIRI membership. The supplied material does not announce a further release date or specify which indicators HIRI will emphasize in its next monthly update.
For now, the figures provide a snapshot across different reporting periods. Subsequent updates may show whether dealer sales continue at the August level, whether mortgage rates and consumer confidence change, and whether contractors report fewer job disruptions or less difficulty closing business.
Key Questions
What did HIRI report about home improvement dealer sales?
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, not a total for August alone.
How did mortgage rates and consumer confidence change?
The 30-year mortgage rate reached 6.86% in September 2026, its seventh straight monthly increase. The Conference Board’s Consumer Confidence Index fell 7.6% to 81.9 that month, its lowest reading in HIRI’s 25-month tracking period.
What contractor challenges did the report identify?
Among contractors reporting sales challenges, 45% said closing new business was a challenge, compared with 23% in Q2 2026. HIRI also said 54% postponed or cancelled scheduled jobs in Q3.
Did contractor job disruptions improve?
The share of contractors postponing or cancelling scheduled jobs fell from 60% in Q2 2026 to 54% in Q3. It remained above the 30% reported for Q3 2025.
Does the update explain why jobs were postponed or cancelled?
The available summary does not give reasons for the job disruptions or establish that mortgage rates or consumer confidence caused them. It also does not include the survey sample size or detailed methodology.
Source: hardwareretailing.com
