Remodelers stay busy
Remodeling sentiment slipped slightly in Q1 but remained above neutral, and many homeowners are investing in upgrades rather than moving — a pattern the National Mortgage News attributes to mortgage rate ‘lock‑in.’ (nationalmortgagenews.com). Meanwhile, existing U.S. home sales fell 3.6% in March from February, which several outlets say is producing a slow start to the spring homebuying season. (canoncitydailyrecord.com).
U.S. remodelers entered spring still busy even as home sales slowed in March, a split that shows homeowners are fixing houses they are not selling. (nahb.org) (nar.realtor) The National Association of Home Builders said its Remodeling Market Index came in at 62 in the first quarter of 2026, down two points from the prior quarter but still above 50, the line where more remodelers say conditions are good than poor. (nahb.org) That survey’s current-conditions measure was 70, down one point, while the future-indicators measure fell four points to 54 as leads and project backlogs eased. (nahb.org 1) (nahb.org 2) At the same time, existing-home sales fell 3.6% in March from February to a seasonally adjusted annual rate of 4.02 million, according to the National Association of Realtors. Sales were down in all four regions from a month earlier and down 1.0% from March 2025. (nar.realtor) The housing market is producing two different kinds of demand. Fewer people are closing on existing homes, but contractors are still getting work from owners who want a better kitchen, an added room or a repaired roof without taking on a new mortgage. (nar.realtor) (nahb.org) National Mortgage News said many owners are staying put because replacing an older low-rate loan with a new higher-rate mortgage would sharply raise monthly payments, a pattern lenders and brokers often call rate lock-in. (nationalmortgagenews.com) Mortgage costs remain high enough to shape those decisions. National Mortgage News reported this month that the average 30-year fixed rate had climbed to 6.46%, the highest level in seven months, as mortgage applications fell 10.4%. (nationalmortgagenews.com) Prices are not giving buyers much relief either. The median existing-home price rose 2.7% from a year earlier to $403,700 in March, which the Realtors group said was a record high for that month. (nar.realtor) Inventory is improving, but not enough to reset the market. Total housing inventory at the end of March was 1.33 million units, up 8.1% from February and 19.8% from a year earlier, equal to a 4.0-month supply at the current sales pace. (nar.realtor) For remodelers, that means a slower sales market has not turned into a collapse in renovation work. For buyers and sellers heading into the spring season, it means the housing slowdown is still pushing money into existing homes rather than moving people into new ones. (nahb.org) (nar.realtor)
