Lowe’s (NYSE: LOW) Could Get New Lift Ahead of Expected Rate Cuts ,says JPMorgan analysts

Lowe’s  (NYSE: LOW) benefited significantly from the slashing of interest rates and subsequent boom in home buying early in the pandemic, and stands to see some tailwinds again if the Federal Reserve cuts currently high rates this year, JPMorgan analysts say in a research note. They upgrade the stock’s rating to overweight, saying that the market is pricing in 150 basis points in rate cuts by this time next year, suggesting mortgage rates fall to about 5.5% by January. The last time mortgage rates were at 5.5%, single family existing-home sales trended at about 4.3 million homes, which would represent a 20% growth rate from recent levels, the analysts say.

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