Homeowners Choose Maintenance Over Renovations Amid Rising Borrowing Costs
Homeowners are increasingly choosing to stay put and maintain their existing homes rather than undertaking costly renovations. According to CNBC, mortgage rates have risen above 7.5% this week, their highest level in three years, making borrowing more expensive for homeowners with mortgages at lower rates.
This has led to a decline in home equity loan and HELOC applications, as homeowners are prioritizing essential maintenance over discretionary renovations. Data from Angi shows that consumers are postponing projects and shifting spending towards smaller tasks such as furnace tune-ups and water heater replacements.
The trend is reflected in retail data from Home Depot and Lowe's, which has seen a decline of 10-28% in big-ticket renovation categories between September 2025 and August 2026 compared to the prior year. Sales of shower stalls and bathtubs have fallen by 21% and 10%, respectively.
Experts believe that homeowners are skipping cosmetic upgrades and focusing on necessary repairs due to high borrowing costs, leaving their homes more vulnerable to costly damage.