Lowe’s (LOW) , along with other retailers in the home improvement sector, is continuing to suffer from an alarming trend that’s putting a dent in its profits. As a result, the company is heavily relying on three major factors to help tackle the problem.

In its third-quarter earnings report for 2024, Lowe's revealed that its customers have grown weary of spending money in its stores. Lowe’s comparable sales during the quarter declined by about 1% year over year.

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Also, according to a recent report from Placer.ai, Lowe’s saw store visits decline by roughly 4%, compared to the same quarter last year.

Related: Lowe’s cuts back major policies amid woke blowback

The retailer also trailed behind its main competitor Home Depot, which accounted for about 29% of visits to home improvement and furnishing chains across the country during the third quarter. Lowe’s only accounted for roughly 21%.

Decreases in the number of visits and consumer spending have contributed to Lowe's facing a 4.6% year-over-year decline in it net earnings.

Lowe's CEO calls out the source of the problem

During an earnings call on Nov. 19, Lowe’s CEO Marvin Ellison claimed that while interest rates have recently decreased, consumers continue to face other economic pressures that are causing them to hold onto their cash.

“While interest rates are beginning to drop, consumers continue to face affordability challenges as both inflation and interest rates are putting pressure on their wallet,” said Ellison. “Mortgage rates also remained stubbornly high and there's still a meaningful gap between current mortgage rates to purchase a home and the homeowners existing rates with over half of current rates below 4%. Combined with the lack of available homes for sale, housing turnover remains near 30-year lows.”

Currently, the average 30-year mortgage rate remains high — above 6% — and it has been that way for the past two years, despite the Federal Reserve's recent interest rate cuts.

Lowe’s also noted its customers are mostly pulling back on funding large DIY home improvement projects in areas such as kitchen, bath, flooring and decor. However, it has seen more of its customers purchasing items for smaller projects in sectors such as outdoor.

Related: Home Depot sounds alarm on customer behavior

This consumer behavior doesn’t come as a surprise since, according to a recent survey from U.S. News, 42% of U.S. homeowners are only opting to take on light home improvement projects, such as painting or landscaping, compared to the 30% who are doing full renovations.