Prices rising at Home Depot
Home Depot warned of "modest" price increases on some imported goods due to tariffs this year, but said such hikes should not be broad-based because it sources many of its products and materials domestically, according to news reports.
A company executive told analysts during a call to discuss earnings that the latest tariff rates were significantly higher than in May, when the company had expressed optimism that it would not have to raise prices. The company said many shoppers appear to be deferring larger big-ticket purchases and projects in favor of smaller ones.
“Our second quarter results were in line with our expectations. The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects,” said Ted Decker, chairman, president and CEO in a statement.
Home sales forecast holds steady
Home sales are forecast to reach 4.74 million units for 2025, holding steady compared to last month's forecast of 4.85 million units, according to a new outlook from mortgage finance giant Fannie Mae.
At that pace, existing home sales would total 4.09 million units in 2025, slightly more than the 4.06 million units recorded in 2024.
Mortgage rates, meanwhile, are projected to end 2025 and 2026 at 6.5 percent and 6.1 percent, respectively, modestly higher than what the group had forecast in July.