Why Redfin Stock Popped Today
Shares of Redfin (NASDAQ: RDFN) rallied 15.9% on Thursday as investors in the online real estate platform celebrated the prospect of lower interest rates in the coming year.
Redfin's pop today extended a late rally that began Wednesday afternoon after U.S. Federal Reserve officials opted to leave their benchmark interest rate flat for the third straight month, at a targeted range of between 5.25% and 5.5%. More exciting for investors in Redfin, however, is that policymakers on the Federal Open Market Committee also signaled there will be at least three rate cuts in 2024. This will mark the first rate reductions since the Fed began raising rates in March 2022 in an effort to combat sky-high inflation.
Investors should keep in mind that the Fed doesn't directly set mortgage rates. But its management of the federal funds rate does influence mortgage lenders as they determine how much interest to charge on mortgage loans.
Source Fool.com
