New York, Jan 10, 2026, 11:42 ET — Market closed
- Home Depot closed Friday up 4.2% as housing-linked stocks rallied on a new U.S. mortgage-bond buying push
- Traders are weighing how much the plan can actually move mortgage rates — and how fast
- Next catalysts include the Fed’s Jan. 27-28 meeting and Home Depot’s Feb. 24 results
Home Depot shares closed up 4.2% on Friday at $374.64 on about 7.1 million shares, after trading between $360.58 and $375.43, as investors bought housing-sensitive stocks following President Donald Trump’s order for $200 billion in mortgage-bond purchases. Redfin’s head of economics research, Chen Zhao, said the program would have a “fairly small impact” and might lower rates by 10 to 15 basis points — 0.10 to 0.15 percentage point. (Reuters)
The move matters because Home Depot sits close to the housing cycle. When borrowing costs stay high, homeowners put off moving and often delay big-ticket projects, which can dull demand for building materials, appliances and fixtures.
Investors have been looking for a spark after a long patch of choppy housing activity. Even small shifts in mortgage rates can change the math for buyers and for contractors who depend on turnover.
Trump wrote in a Truth Social post that the bond buying was meant to cut mortgage rates and monthly payments, and Federal Housing Finance Agency Director Bill Pulte said Fannie Mae and Freddie Mac would execute the purchases. TD Cowen said the move could narrow the spread between the 30-year mortgage rate and the 10-year Treasury yield — the gap lenders use to price home loans. The Philadelphia Housing index gained 4.8% as Jefferies estimated mortgage rates may need to fall into the mid- to high-5% range, from about 6.2%, to bring more consumers back. (Reuters)
Rival Lowe’s rose 4.3% on the day. Homebuilder D.R. Horton jumped 7.8% and mortgage lender Rocket Companies gained 9.6%, underscoring the market’s rush for rate-sensitive housing exposure.
Bond yields also eased after U.S. job growth slowed in December and the unemployment rate dipped to 4.4%, a mix that bolstered expectations the Fed will hold rates at its Jan. 27-28 meeting. “All roads lead to the unemployment rate,” said Olu Sonola, head of U.S. economic research at Fitch Ratings. (Reuters)
At its investor day in December, Home Depot projected fiscal 2026 comparable sales growth between flat and 2% and forecast adjusted earnings per share to be flat to up 4%. CFO Richard McPhail said then the company had not yet seen a catalyst or inflection in housing activity. (Reuters)
In a separate development, the U.S. Labor Department said plaintiffs in Pizarro v. Home Depot withdrew their petition for Supreme Court review of a 401(k) lawsuit, which the department said should bring the case to a close. “This decision speaks volumes,” Solicitor Jonathan Berry said in a statement. (DOL)
But the mortgage-bond order comes without a clear timeline, and investors do not know how quickly it could feed into the 30-year fixed rate. Even a modest drop can lift demand and, in tight markets, keep prices high — the wrong kind of help for affordability.
For HD, the rally left the stock parked just below the $375 area after a sharp intraday reversal from the low $360s. Traders will watch whether it can hold above $370 when U.S. markets reopen on Monday.
U.S. markets are closed for the weekend, leaving traders to look for more detail from housing regulators on how the bond buying will be carried out. Mortgage-rate moves will remain the tell; a widening mortgage-Treasury spread would test Friday’s run quickly.
Beyond the policy headlines, focus shifts to the Fed’s Jan. 27-28 decision and the earnings calendar. Home Depot is scheduled to report quarterly results on Feb. 24. (Home Depot Investor Relations)
