Mortgage Rate Surge Hits Lowe's and Home Depot Hard

Mortgage rates in the US have reached a one-year high of 6.71% for a 30-year fixed-rate mortgage.

This increase is directly correlated with the yield on the 10-year U.S. Treasury note, which has surged due to persistently high inflation, the ongoing Iran war, and growing concerns about mounting US debt, now exceeding $40 trillion.

As a result, both Lowe's and Home Depot are feeling the impact of higher interest rates on their businesses, as they sell materials, tools, and appliances used in homebuilding, renovation, and repair work.

Lowe's has already lowered its full-year outlook, expecting sales of $92 billion, down from its previous range of $92 billion to $94 billion.