Homeowners might worry that having mulch directly contacting their house foundation can lead to the presence of termites. It’s true that mulch offers an environment that termites prefer because it retains moisture and insulates them from extreme temperatures. However, mulch is not a good source of nutrients for termites so it’s unlikely to attract them. If you do discover termites on your property, you should know that it’s likely not because of the mulch but rather other reasons that allured termites such as wood piles, tree stumps or clogged gutters.