Home Equity Remodel Interest Declined in Q3

Homeowners are pulling back on renovation plans as economic uncertainty and mortgage rates affect project funding.

Updated on Sept. 29, 2026 in Home Renovation

Bold vector editorial illustration of a wooden house framing structure partially covered by plastic sheeting, reflecting home renovation trends. — Homeowners pulled back on home equity remodeling inquiries in the third quarter of 2026, as high mortgage rates and material costs drive conservative financial planning. AI Illustration. Upload story photo >

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The share of home equity investment inquiries specifically designated for remodeling projects fell to 62.5% in Q3 2026, down from 64.9% in the prior quarter. Despite this quarterly dip, the figure remains higher than the 60.7% recorded during the same period in 2025.

Why it matters

Elevated mortgage rates, coupled with high construction material costs, are driving more cautious financial behavior among homeowners. This shift highlights how broader economic pressures are tempering renovation demand even as many families express long-term plans to upgrade their homes.

While 65% of homeowners plan to remodel within 18 months, 62% of that group expects to use non-cash financing. Additionally, 65% anticipate project costs exceeding $10,000, with 18.6% planning budgets of more than $50,000.

The players

Point

A financial technology company that tracks and facilitates home equity investment inquiries and homeownership financing.

The details

The index tracks inquiries to Point, measuring demand at the early exploration stage before a project begins. The decline in interest reflects a move toward more conservative financial planning as homeowners navigate the costs of borrowing against their property's equity. While interest stalled nationally, specific regions like Indiana, Tennessee, and Georgia have bucked the trend by reporting the largest increases in remodel interest.

Spring 2026: Point conducted its Moving & Sentiment Study.
Q2 2026: Remodel inquiry share reached 64.9 percent.
Q3 2026: Remodel interest stalled to 62.5 percent.
2027: Expected flattening of remodel pipelines.

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The Home Front

This decline in renovation interest reflects a broader cooling of home-improvement investment as borrowing costs remain elevated. It signals a shift from the rapid, equity-fueled renovation cycle observed in recent years toward a more cautious period of financial management for households.

If you are planning a renovation, use this period to carefully verify your financing options and obtain multiple quotes from licensed professionals to account for material cost volatility. Evaluate your budget against current interest rates to ensure your planned improvements remain financially sustainable over the long term.

The takeaway

Even as national interest in renovations slows, homeowners are continuing to prioritize projects, with nearly 1 in 5 planning investments over $50,000. Before committing to a major upgrade, review your home equity terms and ensure your budget is stress-tested against current market conditions.