In light of the Federal Reserve’s decision, K&B remodeling demand will continue as it has over the past couple of months.
- The second halt in rate hikes this year
- K&B likely to see maintained demand
- Possible hike in Q4
By Elisa Fernández-Arias
The Fed has again chosen not to raise rates for the second time this year. As a result, conditions are likely to stay the same for the kitchen and bath industry, which will carry on with its current level of remodeling demand.
The Fed also signaled that it may be open to implementing future rate hikes, if needed, to combat inflation — hinting that an additional quarter-point hike may be necessary by year end.
Whatever impact the Fed’s recent or future decisions may have on K&B, there is a segment that will continue to create a strong demand for large remodels, as noted in NKBA’s recently released Q2 KBMI: high-income households, which generally don’t rely on credit to finance their projects.