Why Redfin Stock Was Climbing Today
Shares of Redfin (NASDAQ: RDFN), the online real estate brokerage, were moving higher today as investors reacted positively to the Federal Reserve's rate hike announcement yesterday -- especially to the central bank's forecast that it would only issue one more 25-basis-point rate hike for the rest of the year.
As a real estate brokerage, Redfin is especially sensitive to interest rates, since they have a direct impact on mortgage rates. The stock jumped 11.1% as of 1:41 p.m. ET, while the Nasdaq had gained 1.7%.
Yields on the 10-year Treasury note, seen as a benchmark for mortgage rates, have fallen more than 2% since the Fed announced its rate hike decision yesterday. Mortgage rates also fell on the news, with the 30-year fixed rate dipping 25 basis points to 5.875%.
Source Fool.com
