Home Depot said that its customers are still holding off on larger renovation projects as macroeconomic conditions continue to impact the housing market.

As interest rates remain elevated compared to recent years, customers are putting off big home improvement projects, Home Depot says.

Consumers are postponing large renovation projects as unfavorable macroeconomic conditions persist, impacting the U.S. housing market, Home Depot executives warned Tuesday. CEO Ted He blamed the lackluster demand for home improvement projects on “uncertain macroeconomic conditions and a higher interest rate environment.