Why Zillow Stock Skyrocketed This Week
The news this week from the Federal Reserve has sent Zillow (NASDAQ: Z) (NASDAQ: ZG) shares sharply higher. According to data provided by S&P Global Market Intelligence, the real estate tech company's shares jumped by as much as 14.8% this week and were up by 12.7% for the week as of 10:30 a.m. ET Friday.
The Fed cut the federal funds rate -- its benchmark short-term interest rate -- by 50 basis points (0.5 percentage points) at its meeting this week, and many economists are anticipating more cuts this year. If the Fed acts as expected, it could meaningfully lower borrowing costs for homebuyers.
While that was the market's thought this week, the reality may be more complex. Though the 10-year U.S. Treasury rate, which is a benchmark for mortgages, has fallen from 4.3% to 3.7% over the past three months, it rose slightly over the past week. That's because investors are worried that the Fed's rate cut indicates a weak U.S. economy.
Source Fool.com
