Lowe's just slashed its sales forecast for the year — a move that provides a glimpse into what's happening in a big chunk of the U.S. economy. Why it matters: The pandemic spurred a boom in home spending as rock-bottom interest rates encouraged people to borrow to pay for DIY projects — but that era is over.

Lowe’s lowered its full-year guidance as the frozen housing market keeps consumers on the sidelines for big purchases and renovations, including do-it-yourself projects. The retailer now expects comparable sales to fall 3.

High mortgage rates and uncertainty over the economy have pushed many home buyers into wait-and-see mode. That caution is now extending to homeowners and their renovation plans.

Lowe’s cut its annual profit and sales forecasts on Tuesday, echoing bigger rival Home Depot’s concerns of a slim chance of a recovery in home improvement demand this year. The Federal Reserve was expected to cut interest rates earlier this year,