HUD eases FHA mortgage rules, a potential boost for Home Depot sales

HUD said June 23 it was making 14 policy changes to its Federal Housing Administration Single Family mortgage insurance program to lower costs, reduce regulatory burdens and improve affordability for homebuyers and lenders. For Home Depot, easier FHA lending can mean more first-time buyers moving in, and those customers usually start with paint, flooring, fixtures, appliances, blinds and installation support.

The FHA’s Handbook 4000.1 serves as a consolidated source of policy, and HUD uses Mortgagee Letters to tell lenders about FHA operations, procedures and changes. The policy changes are aimed at smoothing the path to homeownership, and smoother closings can pull forward the kinds of move-in projects that drive store traffic in kitchens, baths, flooring aisles and appliance departments. The first effects are more likely to be in quick-turn purchases and small refresh projects than in a broad remodeling boom.

Home Depot said in its fiscal 2025 annual report that it is the world’s largest home improvement retailer, with net sales of $164.7 billion and more than 2,300 stores in the U.S., Canada and Mexico. In its first quarter of fiscal 2026, the company posted sales of $41.8 billion, up 4.8% from a year earlier, with U.S. comparable sales up 0.4%. Home Depot also said underlying demand in the business was relatively similar to fiscal 2025 despite greater consumer uncertainty and housing affordability pressure.

As of 2023, Freddie Mac counted three million renter households ages 25 to 44 with inflation-adjusted earnings of at least $75,000 that could represent potential first-time buyers. Its data also showed the share of first-time homebuyers in funded conforming loans rose from around 20% in 2004 to more than 50% in the second quarter of 2024. The National Association of REALTORS®' 2025 profile put first-time home buyers at an all-time low of 21%, with a median age of 40, and in January 2026 it said first-time buyers hit a record low in 2025 but may find a more welcoming market in 2026.

NAR says builders still face affordability challenges and a persistent skilled labor shortage. Homeowners who do not move still need repairs, upgrades and the labor to get them done, so repair and remodel work remains relevant for Home Depot even when sales of existing homes stay uneven.