Home Depot Shares Hit 52-Week Low as Iran War Threatens Housing Rebound

Dow Jones04-03 00:56

By Nicholas G. Miller

Shares of Home Depot hit a 52-week low Thursday as the conflict in Iran puts the long-awaited rebound of the housing market at risk.

The stock fell to $318.66 before rebounding to $320.67 a share Thursday. Shares are down 2.7% ahead of the close, and have declined close to 16% since before the beginning of the conflict in the Middle East, which has increased mortgage rates and fueled economic uncertainty, sending potential homebuyers to the sidelines.

Home improvement retailers including Home Depot rely on housing turnover to drive sales since homeowners often undertake remodeling projects before selling or after buying a home.

Home Depot has seen weak sales in recent quarters as a stagnant housing market limited home-improvement demand. The company has also said that economic uncertainty, including slipping home prices and a wobbly job market, have led homeowners to delay remodeling projects. High interest rates have particularly curtailed discretionary upgrades that homeowners typically fund with financing.

Mortgage rates fell in the second half of 2025 and dropped below 6% in February for the first time since 2022, sparking hopes of a rise in homebuyer demand in time for the start of the spring selling season.

But since the conflict in the Middle East began, mortgage rates have surged, reaching an average of 6.46% this week, according to Freddie Mac.

Higher gas prices have also threatened to weigh on the finances of potential homebuyers, while the prospect of an economic downturn could make buyers hesitant.

"If the cost of everything else is also going up, people probably don't want to add to their monthly housing costs too," said Realtor.com Senior Economist Joel Berner this week. "If this is the prevailing sentiment, we could see another lackluster spring selling season."

Homebuilder KB Home cut its fiscal-year guidance last month, warning that the conflict in the Middle East is creating uncertainty that could put off homebuyers.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

April 02, 2026 12:56 ET (16:56 GMT)

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Home Depot Shares Hit 52-Week Low as Iran War Threatens Housing Rebound

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