In the second quarter of 2026, the National Association of Home Builders Remodeling Market Index (RMI) posted a reading of 61, down one point compared to the previous quarter. Even with this slight decline, remodeler sentiment remains the standout sector within the housing industry.
With current mortgage rates above the median outstanding rate for existing homeowners, the incentive to remodel instead of purchasing a new home persists due to this lock-in effect.
The RMI is based on a survey that asks remodelers to rate various aspects of the residential remodeling market “good,” “fair” or “poor.” Responses from each question are converted to an index that lies on a scale from 0 to 100. An index number above 50 indicates a higher proportion of respondents view conditions as good rather than poor.
In the second quarter of 2026, the Current Conditions Index averaged 70, unchanged from the previous quarter.
