A slowdown in the consumer economy began at the end of 2022 & flat consumer spending is expected for 2023. This reflects a demand shift from goods back into services, as covid dynamics reverse themselves all the way.
February home resales represented the first sequential increase in activity in 13 months, leaving resale inventory levels at 2.6 months’ supply while new home inventory continues to be limited.
Confident consumers seek bigger & better houses, creating turnover in pursuit of their forever homes. Homeowners lacking economic confidence are more likely to stay put, or even move in with other family members.
90% of Lowe’s customers have existing fixed interest rate mortgages (sub 3%) & are immune to Fed rate hikes.