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

Home Depot and Lowe's shares dropped 2.5-3% after the Federal Reserve held interest rates steady on June 17, 2026. Higher mortgage rates (30-year fixed at 6.47%) reduce housing turnover and consumer spending on home improvement projects. Both retailers forecast weak same-store sales growth of just 1% for fiscal 2026, with some Fed officials expecting potential rate hikes ahead.