Slowest housing market in years is weighing on consumer spending

Plunging U.S. home sales are having a ripple effect on consumer spending, as fewer Americans are moving into houses that need to be outfitted with furniture and appliances.

The effects are visible across the economy. Spending on furniture and related items fell nearly 12% from the year-earlier period in October.

Home goods sellers including Z Gallerie and Serta Simmons Bedding have filed for bankruptcy this year, citing weaker demand, and more are probably coming.

Williams-Sonoma Inc.’s chief executive said last month that consumers are hesitant to spend on expensive furniture.

Home Depot Inc., the hardware and appliance store, said its revenue will likely drop this fiscal year.

The Federal Reserve last year started a rate hiking campaign to tame inflation, and slowing the housing market is a key way to make that happen.

In October, mortgage rates reached their highest level since 2000, helping to make housing the least affordable

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3 Home Improvement Stocks That Can Renovate Your Portfolio

During a bear market, home improvement stocks have historically been solid defensive plays

The housing sector is slowing down. Rising mortgage rates are having the predictable effect of cooling down demand.



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Or are they? While homeowners may not be able to get the same premium they could command just one year ago, there is still an simple supply of homes on the market. And once these homes change hands, new homeowners will be ready to make their new house their own.

However, that’s not the only catalyst for home improvement stocks. Homeowners who are deciding to “love it” rather than “list it” are likely to put some money into one of their largest investments as they wait for the housing pendulum to swing back in their favor.

In this article, I’ll give you three home improvement companies that continue to generate strong revenue and earnings. And two

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