| The U.S. housing market is on shaky ground. Last week, the average 30-year fixed mortgage rate climbed to 6.81%... Indicating that if Federal Reserve rate hikes continue, we could be on our way back to peak summer 2022 levels – when inflation reached a boiling point. 
Source: freddiemac.com As mortgage rates rise, home prices tend to follow. The median sales price for an existing home climbed toward $400,000 in May, offering little relief for prospective homebuyers: 
Source: nar.realtor And mortgage applications are way down, dropping 31.8% year-over-year in June, according to data from the Mortgage Bankers Association. Many folks simply can't afford to buy a new home right now. LikeFolio trend data reflects this reality, with consumer mentions of purchasing a new house falling off significantly: 
This confluence of macroeconomic factors could put many companies relying on the housing market at risk... like a certain home improvement store we covered last week. Yet many stocks operating in the sector are on the rise. Home buying sites like Zillow (Z) have seen their stock prices skyrocket in 2023, with Redfin (RDFN) and Opendoor Technologies (OPEN) more than tripling. ✓ Z: +55% YTD ✓ RDFN: +250% YTD ✓ OPEN: +300% YTD
Surely waning home affordability – combined with the digital ad spending slowdown – could put a damper on all that momentum. And that might be the case for two out of three. But one of these players has an ace up its sleeve that has us feeling optimistic about its future prospects. Take a look at how Zillow, Redfin, and Opendoor stack up with consumers to find out which emerges a potential winner in this Derby City Stock Showdown... Click here to continue reading Until next time, | 
No comments:
Post a Comment