Investors are hoping that next week's Federal Reserve meeting offers more clarity about the path interest rates could take. But even if the Fed pauses their streak of 10 consecutive rate hikes, most expect the higher rates we are living with won't be unwound overnight. The increases are having their intended impact on consumer behavior, particularly in the home improvement space, where consumers grapple with pricey projects that often need to be financed over time.
A Barclays analysis of Home Depot and Lowe's transactions by price point using credit card data showed big-ticket sales, deemed greater than $900, declined less in May compared with the same month a year ago than they did comparatively in March and April. Analyst Seth Sigman, who kept his equal weight rating on both stocks, said improvements in commodity deflation may have helped get consumers back into more-expensive purchases.