NEW YORK (CNNMoney.com) - The home renovation boom is simmering down, feeling the bite of higher loan rates, according to a news report Monday

Spending on home renovations in November were 4.1 percent down from the month before, and down 5.6 percent from November 2004, The Wall Street Journal reported Monday.

The report also cited the quarterly Remodeling Activity Indicator, a market barometer developed by Harvard University's Joint Center for Housing Studies, which showed a slowing in home renovation spending. The indicator showed that spending on remodeling rose 4.3 percent in 2005, compared to a 20 percent surge in 2004.

Also, on Friday the Commerce Department reported that sales of building and gardening supplies slipped by 0.6 percent in December while overall retail sales grew 0.7 percent.

To read about plunging home sales in November, click here.