Redfin Is Soaring on a Bad Day for Real Estate Stocks -- Here's Why
The stock market was having a generally weak day on Wednesday, thanks to some hotter-than-expected inflation data. And real estate stocks were especially hard-hit. Real estate investment trusts, or REITs, were down sharply as a group, as high inflation reduces the probability of further Federal Reserve interest rate cuts. Additionally, leading real estate technology platform Zillow Group was sharply lower after missing earnings expectations.On the other hand, Redfin (NASDAQ: RDFN) was a standout, with shares up by 9% at 10:45 a.m. ET after rising by as much as 11% earlier in the day.Redfin's move isn't related to its earnings. In fact, its fourth-quarter results aren't set to be released until Feb. 27. And at first thought, you might expect Redfin to be under pressure today. After all, higher-than-expected inflation means that mortgage rates are likely to remain higher for longer, and this can weigh on the housing market.Continue reading
The stock market was having a generally weak day on Wednesday, thanks to some hotter-than-expected inflation data. And real estate stocks were especially hard-hit. Real estate investment trusts, or REITs, were down sharply as a group, as high inflation reduces the probability of further Federal Reserve interest rate cuts. Additionally, leading real estate technology platform Zillow Group was sharply lower after missing earnings expectations.
On the other hand, Redfin (NASDAQ: RDFN) was a standout, with shares up by 9% at 10:45 a.m. ET after rising by as much as 11% earlier in the day.
Redfin's move isn't related to its earnings. In fact, its fourth-quarter results aren't set to be released until Feb. 27. And at first thought, you might expect Redfin to be under pressure today. After all, higher-than-expected inflation means that mortgage rates are likely to remain higher for longer, and this can weigh on the housing market.
