RDFN - Why Opendoor Redfin and Compass Stocks All Jumped Today
2023-11-02 17:01:53 ET
Real estate tech stocks have been battered over the last year as surging mortgage rates and elevated home prices have led many prospective homebuyers to wait on the sidelines.
As a result, real estate brokerages like Redfin (NASDAQ: RDFN) and Compass (NYSE: COMP) , as well as home-flipping specialists like Opendoor Technologies (NASDAQ: OPEN) , and other companies that rely on real estate transactions for their business have all plunged in recent years.
However, those stocks got some good news today as the sector rallied in response to remarks yesterday from Federal Reserve Chair Jerome Powell that are being interpreted as raising the likelihood that the central bank is done raising interest rates this cycle. At its meeting, which ended yesterday, the Fed maintained the benchmark Fed funds rate at 5.25% to 5.5%, and Powell also downplayed the Federal Open Market Committee's "dot plot" forecast from its September meeting, which called for one more 25-basis-point rate hike this year and for rates to remain elevated through the next year or two.
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Why Opendoor, Redfin, and Compass Stocks All Jumped Today