Why Redfin Stock Sank 20.9% in December
Shares of Redfin (NASDAQ: RDFN) sank 20.9% in December, according to data from S&P Global Market Intelligence. The online real estate platform put out numerous reports during the month highlighting the slowdown in the real estate market, which is affecting its business. With rising interest rates and falling home prices, both buyers and sellers are hesitant to dip their toes into the market at the moment.
As of this writing, Redfin stock is down 50% in the past six months and 86% over the past year, making it one of the worst-performing stocks over that time frame.
In December, the Federal Reserve decided to raise its benchmark interest rate again, one of the many times it did so in 2022. Its current effective funds rate is just above 4%, which sets the benchmark for other lending institutions across the country. Mortgage rates for real estate have been massively affected by this, rising from record lows of 3% at the start of 2022 to just above 6% today.
Source Fool.com
