1 Stumbling Stock Down 93% Is a Buy on the Dip
The Consumer Price Index (CPI) is the core measure of inflation in the U.S., and in June 2022, it recorded a 40-year high of 9.1%. That prompted the Federal Reserve to embark on the most aggressive campaign to hike interest rates in its history.
Higher interest rates can result in less borrowing power for the typical American, which directly impacts the housing market. With mortgage rates inching toward 8%, real estate technology company Redfin (NASDAQ: RDFN) says homebuyers on a $3,000 monthly budget have lost $40,000 in buying power over the past year alone.
Naturally, turbulence in the housing market is also bad for Redfin because the company generates revenue by providing a portfolio of services to sellers. In fact, Redfin stock has crumbled 93% from its all-time high.
Source Fool.com
