Why Shares of Redfin, AGNC Investment Corp., and Annaly Capital Management Are Falling Today
Shares of several real estate stocks and mortgage real estate investment trusts (REITs) struggled today as mortgage rates soared.
Shares of the real estate brokerage Redfin (NASDAQ: RDFN) traded close to 7% lower as of 11:50 a.m. ET today. Meanwhile, shares of mortgage REITs AGNC Investment (NASDAQ: AGNC) and Annaly Capital Management (NYSE: NLY) traded more than 5% and nearly 10% lower, respectively.
Mortgage rates just keep pushing higher. The yield on the 30-year fixed mortgage zoomed to 6.7%, up more than 40 basis points from last week (basis point = 0.01%), and is now the highest it's been since July 2007. The sudden spike due to market volatility and uncertainty has started to choke off homebuyer demand.
Source Fool.com
