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The Home Improvement Research Institute’s October 2026 economic 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 the 25 months tracked. It also records a seventh consecutive monthly increase in 30-year mortgage rates, falling consumer confidence and continued difficulty for contractors closing business and keeping scheduled jobs.
The Home Improvement Research Institute (HIRI) reported that rolling 12-month sales at building materials, garden equipment and supplies dealers reached $520.5 billion in August 2026, the highest level in the 25 months covered by its data. Its October economic update also shows rising mortgage rates, a sharp September drop in consumer confidence and persistent challenges for contractors trying to win and complete work.
The 30-year mortgage rate reached 6.86% in September, marking its seventh consecutive monthly increase and its highest reading since January 2025, according to HIRI’s update. The report also cites the Conference Board’s Consumer Confidence Index, which fell 7.6% to 81.9 in September, its lowest level in the 25 months tracked. These figures describe different parts of the housing and consumer environment; the update does not establish that either directly caused the reported sales result.
Contractor responses point to difficulty converting potential work into booked jobs. Among contractors reporting sales challenges, 45% cited closing new business, up from 23% in the second quarter of 2026. The report also says 54% postponed or cancelled scheduled jobs in Q3. That was down from 60% in Q2 2026 but remained well above the 30% recorded in Q3 2025.
HIRI describes its monthly Economic & Industry Update as a review of general economic, housing-market and home-improvement data, alongside evaluations of indicators affecting the sector. The source report highlights these five measures but does not provide, in the available summary, the full dataset, survey methodology or a breakdown of sales by product category or region.
Sales Growth Meets Contractor Strain
The figures show a mixed picture for home improvement businesses. Dealer sales reached the highest level in HIRI’s 25-month tracking period, while contractors reported more difficulty closing new business than in the previous quarter. The sales figure is a rolling 12-month total, not a single-month sales result, so it should not be read as an abrupt August surge.
For retailers, suppliers and contractors, the combination of higher borrowing costs and lower consumer confidence is relevant to planning, even though HIRI’s summary does not quantify how much those conditions affected purchases or project decisions. The contractor job figure also matters: fewer postponements and cancellations than in Q2 may indicate some improvement quarter to quarter, but the level remained substantially above the same quarter a year earlier.
Readers should distinguish the market-wide sales measure from contractor survey responses. The reported dealer sales total covers a rolling period and a defined group of businesses; the contractor percentages describe respondents who reported sales challenges or changes to scheduled jobs. They do not show that every business experienced the same conditions.
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How the Measures Compare
HIRI’s update was published on November 4, 2026, and covers a range of monthly economic and industry indicators. The sales measure is for the 12 months through August 2026. Mortgage-rate and consumer-confidence readings refer to September, while contractor scheduling results compare the third quarter of 2026 with the second quarter of 2026 and the third quarter of 2025.
Those dates matter when interpreting the apparent contrast between record-level tracked sales and worsening conditions in some other measures. Sales reflect activity accumulated over a year, whereas rates and confidence are snapshots for September and contractor responses cover a quarter. The source presents them together as indicators of the wider environment, not as a single causal account.
The available report summary says readers can access the full update through HIRI membership. It does not give additional detail on how sales were adjusted, the number or profile of contractors surveyed, or how responses were collected. Those limits restrict comparisons beyond the specific figures and periods stated.
“Rolling 12-month sales at building materials, garden equipment and supplies dealers reached $520.5 billion in August 2026.”
— Home Improvement Research Institute
Survey Scope and Market Effects
The summary does not disclose the contractor survey sample size, respondent mix or methodology, so it is not possible to determine how closely the percentages represent contractors across the industry. It also does not explain what counted as a postponed or cancelled job, or whether those jobs were later rescheduled.
HIRI’s published summary does not establish why dealer sales reached the reported level or quantify the effects of mortgage rates and consumer confidence on sales, project demand or contractor workloads. The precise reasons contractors had trouble closing new business are also not specified. The figures should be treated as reported indicators, not proof of a direct link between economic conditions and individual business outcomes.
It is also unclear from the summary whether the $520.5 billion figure is adjusted for inflation or how sales were distributed across the dealer categories included. Readers seeking those details would need to consult the full HIRI report.
Full Update Holds More Detail
HIRI’s October 2026 Economic & Industry Update is available through HIRI membership, according to the source report. The full publication may provide additional data and methodology beyond the five figures highlighted in the news summary.
The next relevant developments will be subsequent monthly economic and housing indicators and future contractor survey results. Until those are published, the latest reported picture is a record high in the tracked rolling sales series alongside elevated mortgage rates, lower consumer confidence and contractor challenges that remain above the year-earlier comparison.
Key Questions
What sales figure did HIRI report?
HIRI reported $520.5 billion in rolling 12-month sales at building materials, garden equipment and supplies dealers in August 2026. It described this as the highest level in the 25 months tracked.
How high were mortgage rates in the update?
The 30-year mortgage rate was 6.86% in September 2026, its seventh consecutive monthly increase and highest reading since January 2025, according to HIRI.
What contractor challenges did HIRI report?
Among contractors reporting sales challenges, 45% cited closing new business, compared with 23% in Q2 2026. HIRI also reported that 54% postponed or cancelled scheduled jobs in Q3, down from 60% in Q2 but above 30% in Q3 2025.
Did the report show that higher rates caused sales or job cancellations?
No direct causal link is established in the available summary. HIRI presents the rates, sales, confidence and contractor figures as indicators of the economic and industry environment, but does not quantify how one measure affected another.
Where can readers find the full HIRI update?
The source report says the full October 2026 Economic & Industry Update is available to HIRI members. Its summary does not include the full methodology or additional breakdowns.
Source: hardwareretailing.com
