Why Redfin Stock Was Getting Crushed Yet Again Today
Shares of technology-powered residential real estate company Redfin (NASDAQ: RDFN) are down 5.5% today as of 11:20 a.m. ET, continuing the horrific year the company's shareholders are having. The stock is down 87% so far in 2022.
There was no specific news out today to cause the slump. However, the housing market is getting hammered right now. Mortgage rates are soaring to the highest level in a decade and a half, thanks to the U.S. Federal Reserve's steep interest rate hikes to try and tame inflation. As of today, an average 30-year mortgage rate is just over 7%.
In its fight against inflation, the Fed has called out housing prices as one key area it wants to cool off. A spike in mortgage rates will certainly do the trick, but it will take time to translate into lower home values.
Source Fool.com
