Why Shares of Opendoor and Redfin Jumped Today
Many housing-related stocks rose on Wednesday on optimism that inflationary pressures could be easing. By the close of trading, shares of Opendoor Technologies (NASDAQ: OPEN) and Redfin (NASDAQ: RDFN) were up 9.4% and 5%, respectively.
The consumer price index (CPI), which measures the prices people pay for various goods and services, rose by 8.5% year over year in July. That was down from its 9.1% year-over-year surge in June.
The news was celebrated by investors, who took the report as a sign that inflation was slowing. If that proves to be true, the Federal Reserve's planned interest rate hikes could become unnecessary. That, in turn, could lead to a decline in mortgage rates, which would improve affordability levels for homebuyers and likely boost demand for real estate services.
Source Fool.com
