Doom And Gloom Ahead: Redfin CEO Unveils Dire Forecast For Housing Market
Portfolio Pulse from Aaron Bry
Redfin CEO Glenn Kelman has warned that high mortgage rates are slowing down the housing market, as people are not moving and therefore not listing their homes. Despite higher mortgage rates increasing monthly payments, the underlying prices of homes have not dropped significantly. This is making it difficult for companies like Redfin Corp and Zillow Group Inc to sell homes. Both companies' stocks have rallied this year, but Redfin's stock has dropped more than 40% in the last month following disappointing earnings results.
August 16, 2023 | 10:09 pm
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NEUTRAL IMPACT
Zillow Group Inc may also be affected by the high mortgage rates and stagnant home prices, which are making it difficult to sell homes. However, the company's stock has rallied this year.
While Zillow's stock has rallied this year, the high mortgage rates and stagnant home prices could potentially impact the company's ability to sell homes. However, the exact impact on Zillow's stock is not clear from the article.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Redfin's stock has dropped more than 40% in the last month following disappointing earnings results. The high mortgage rates and stagnant home prices are making it difficult for the company to sell homes.
The high mortgage rates are discouraging people from moving and listing their homes, which directly impacts Redfin's business. The company's recent disappointing earnings results have also negatively affected its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100