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Home Depot reported record sales, profit despite soaring home mortgage rates

Home Depot Results
Posted at 11:33 AM, Aug 16, 2022
and last updated 2022-08-16 12:33:21-04

Despite soaring home mortgage rates, it seems people are shopping for home improvement items amid a volatile housing market.

According to Home Depot, the company announced Tuesday that overall sales from a year ago were up 6.5% to $43.8 million, and they reported a net profit of $5.2 billion, or $5.05 a share.

"In the second quarter, we delivered the highest quarterly sales and earnings in our company's history," said CEO Ted Decker in a press release. "Our performance reflects continued strength in demand for home improvement projects. Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment. I would like to thank them and our many partners for their hard work and dedication to our customers."

The company also said overall revenue was up 6.5%.

The company said that despite shopping transactions falling by 3%, the amount they spent rose by 9.1%.

Home Depot's news comes as the Associated Press reported that mortgage rates in the U.S. soared in the last week.

According to mortgage buyer Freddie Mac, the news outlet reported that a 30-year rate increased from 4.99% to 5.22% in a week.

A year ago, the mortgage rate was at 2.87%, the Associated Press reported.