Why Redfin Stock Sank Today
Shares of Redfin (NASDAQ: RDFN) fell 6.7% on Tuesday, following bearish analyst commentary.
Piper Sandler analyst Thomas Champion slashed his rating on Redfin's stock from overweight (expected to do well in the future) to underweight (expected to do poorly in the future). He now sees the real estate services company's share price falling roughly 10% to $11. That's down from his previous forecast of $40 per share.
Surging house prices have made buying a home significantly less affordable. At the same time, the Federal Reserve has signaled its intent to raise interest rates to tame inflation. That's driven mortgage rates above 5% -- the highest they've been in more than a decade.
Source Fool.com
