Why Shares of Rocket Companies, Zillow, and Redfin Are Up This Week
Shares of several real estate stocks bounced this week after what has been a brutal month and year of selling in the sector.
For the week, shares of the largest mortgage originator in the county, Rocket Companies (NYSE: RKT), traded close to 5.5% higher as of 2:38 p.m. ET today. Shares of the real estate marketplace Zillow Group (NASDAQ: ZG) (NASDAQ: Z) traded nearly 14% higher and shares of the brokerage Redfin (NASDAQ: RDFN) traded more than 13% higher.
While all of these companies have different business models, they are all dependent to an extent on mortgage volume, which has absolutely plummeted as the Federal Reserve has aggressively raised its overnight benchmark lending rate, the federal funds rate.
Source Fool.com