NEW YORK, January 11, 2026, 11:24 (ET) — Market closed
Home Depot (HD) shares rose 4.2% on Friday, January 9, to close at $374.64, finishing the week on a sharp upswing ahead of Monday’s open.
The move came as housing-linked stocks rallied after President Donald Trump ordered $200 billion of mortgage-backed securities purchases — bonds backed by pools of home loans — in a bid to bring down housing costs. Brian Jacobsen, chief economic strategist at Annex Wealth Management, told Reuters “every little bit will help push mortgage yields lower,” but he added the policy could also fuel demand and keep affordability tight. Reuters
For Home Depot, rates are not just a macro story. Higher borrowing costs have pinned homeowners in place, and softer turnover can pull down the bigger-ticket projects that lift sales, even when repair work stays steady.
Treasury Secretary Scott Bessent said the administration’s approach is meant to “roughly match the Fed” as the central bank lets about $15 billion of mortgage-backed securities roll off its balance sheet each month. The Federal Housing Finance Agency started with an initial $3 billion purchase, and Bessent said any rate relief would more likely come through a tighter gap between mortgages and Treasury yields than an immediate drop in posted rates. Reuters
Mortgage-rate trackers reacted quickly. The 30-year fixed rate fell 22 basis points to 5.99% on Friday, according to Mortgage News Daily, dipping below 6% for the first time in about three years.
Home Depot wasn’t alone in the tape. Lowe’s gained 4.3% on Friday, while the S&P 500 rose 0.65% and the Dow ended up 0.48%, a broad risk-on finish to the week.
The next company-specific marker is February 24, when Home Depot is scheduled to release fourth-quarter results. Investors usually watch comparable sales — a metric that strips out store openings and closures — and any shift in demand from professional contractors, who tend to drive larger orders.
Before that, macro numbers could still swing rate bets. The U.S. consumer price index for December 2025 is due Tuesday, January 13, with retail sales and producer price data also on tap later in the January 12–16 week.
But a policy jolt does not guarantee a demand rebound for housing or home improvement. Redfin economics research head Chen Zhao said the $200 billion buying plan might have a “fairly small impact” — potentially shaving 10 to 15 basis points off mortgage rates — and she noted rates have already eased from roughly 7% in early 2025 to the low 6s with little pickup in transactions. Reuters
For the week ahead, traders will watch whether the bond-buy plan gets follow-through that sticks in mortgage pricing — and whether Tuesday’s CPI print reopens the inflation fight. After that, Home Depot’s next hard catalyst is its February 24 earnings release.
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