Home Depot executives have observed a significant slowdown in high-value home improvement projects as the protracted war with Iran drives up costs for lumber, fixtures, and other materials. This contraction in consumer renovation spending has compressed sales growth and pressured margins across its supply chain.

Average HELOC rates have eased to 7.21% and home equity loan rates to 7.36% — levels last seen in mid-March 2026 — while the prime rate remains at 6.75%. Introductory offers like a 5.99% APR on lines up to $500,000 are emerging, potentially unlocking financing for deferred projects and bolstering future demand.