Here's Why Real Estate Stocks Got Crushed Tuesday
Portfolio Pulse from Aaron Bry
Real estate stocks took a hit on Tuesday due to rising treasury yields. The Real Estate Select Sector SPDR Fund (XLRE) closed down nearly 2%. Real estate tech stocks, Zillow Group Inc (ZG) and Opendoor Technologies Inc (OPEN), closed down about 7% and 10% respectively. Rocket Companies Inc (RKT) also saw a drop of more than 6% as mortgage rates moved higher, nearing 8%, the highest point since 2000. The rise in mortgage rates has softened the demand for new buyers and limited the supply of houses listed.
October 04, 2023 | 4:36 am
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NEGATIVE IMPACT
Opendoor Technologies Inc (OPEN) closed down about 10% due to rising treasury yields and mortgage rates.
The rise in treasury yields and mortgage rates has negatively impacted the real estate sector, leading to a drop in OPEN's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Rocket Companies Inc (RKT) saw a drop of more than 6% as mortgage rates moved higher.
The rise in mortgage rates has negatively impacted the real estate sector, leading to a drop in RKT's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Real Estate Select Sector SPDR Fund (XLRE) closed down nearly 2% due to rising treasury yields.
The rise in treasury yields has negatively impacted the real estate sector, leading to a drop in the XLRE's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Zillow Group Inc (ZG) closed down about 7% due to rising treasury yields and mortgage rates.
The rise in treasury yields and mortgage rates has negatively impacted the real estate sector, leading to a drop in ZG's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100