Why Home Depot and Lowe's Fell After the Fed Held Interest Rates Steady.

Home Depot (HD) and Lowe's (LOW) shares fell 2.5-3% on June 17, 2026, after the Federal Reserve held interest rates steady, dashing hopes for near-term easing. The 30-year fixed mortgage rate sits at 6.47%, keeping housing turnover depressed and crimping demand for home improvement projects that typically accompany moves.

Both retailers have guided to same-store sales growth of just 1% for fiscal 2026, reflecting the pressure elevated borrowing costs place on their core customer base. The Fed's decision came with signals from some officials that rate hikes remain on the table, prolonging the headwinds for housing-sensitive retailers.

Higher mortgage rates create a double bind: fewer home sales mean fewer large remodeling projects, while persistent financing costs discourage homeowners from tapping equity for renovations. The muted sales outlook from both HD and LOW confirms management expects no quick relief.