Angi Data Shows Homeowners Switch to Maintenance Amid High Rates

High mortgage rates are trapping homeowners in place across the United States, forcing a sharp contraction in major home renovation spending while pushing second-mortgage originations toward debt survival rather than remodeling projects, according to financial planning firm Facet and home services marketplace Angi.

Homeowners Defer Major Renovations As Borrowing Costs Climb

With mortgage rates staying untenably high, many Americans are staying put in aging homes instead of buying new properties. Traditionally, homeowners would reach for a home equity loan or a home equity line of credit to fund upgrades like a new deck or walk-in closet, but those financial tools have grown too expensive. Although homeowners originated nearly 20 percent more second mortgages or HELOCs in the second quarter of the year compared with the first quarter, experts state they are utilizing the funds to stay afloat rather than for home improvements.

As rates keep rising, tapping into home equity will become more and more expensive for homeowners. This will generally hold back consumer spending, but it will hit big-ticket items, like home renovations, particularly hard,

Tom Graff, Facet

Federal Reserve Rate Hikes Restrict Consumer Spending On Big Purchases

Graff added that consumer spending is lagging behind as a driver of gross domestic product growth, leaving little economic cushion alongside a soft jobs market, declining wage growth, high gas and diesel prices, and net negative immigration.

Angi Data Shows Sixty Percent Of Consumers Switch To Basic Maintenance

Angie Hicks, co-founder and chief customer officer of Angi, reported that homeowners are holding back on major projects as HELOCs and equity loans move out of reach. Angi data reveals that 60 percent of consumers are putting off projects and switching to maintenance, prioritizing essential tasks like furnace tune-ups over major kitchen remodels. Retail analytics firm Datavations reported that from September 2025 through August 2026, big-ticket renovation categories declined between 10 percent and 28 percent at Home Depot and Lowe's compared with the prior year.

First-Time Home Buyers Face Record Median Ages And Surging Costs

Beyond the renovation market, high interest rates and broader inflation are penalizing the wider real estate sector and prospective buyers. Pending home sales fell 4.7 percent over the past year due to higher mortgage rates, while the median age of a first-time home buyer reached an all-time high of 40, according to the National Association of Realtors. Realtor.com data shows that a record 25.2 million adults under 35 lived with their parents last year instead of renting or buying. Prospective buyers like 26-year-old Ian Sohan in Virginia face home prices starting around $600,000 for basic needs and approaching $1 million in desired neighborhoods like Arlington, making home purchases increasingly intimidating.

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