Redfin stock sinks toward record low as surge in Treasury yields weighs on real estate services companies

Shares of Redfin Corp. [rdfn] tanked 6.5% toward a record-low close, as big jump in Treasury yields weighed on real estate services companies, by increasing concerns over rising mortgage rates and further weakness in the residential housing market. Redfin’s stock has tumbled TK% amid a six-day losing streak, and was headed for the lowest close since it went public in July 2017. Among other real estate services companies, shares of Douglas Elliman Inc. DOUG, -0.65% slid 1.1% toward a record low, RE/MAX Holdings Inc. RMAX, -2.20% dropped 2.1% and Anywhere Real Estate Inc. HOUS, -3.61% gave up 4.2%, while the S&P 500 SPX, -0.59% fell 0.6% and the yield on the 10-year Treasury note TMUBMUSD10Y, 3.676%, which guides mortgage rates, climbed to an 11-year high of 3.682%. Also weighing on sentiment, home builder KB Home KBH, -4.12% reported disappointing fiscal third-quarter results after Wednesday’s closing bell. In a conference call with analysts, KB Home Chief Executive Jeffrey Mezger said, according to a FactSet transcript: “Although the long-term outlook remains positive, many prospective buyers have paused and moved to the sidelines amid higher mortgage rates along with ongoing inflation and a range of macroeconomic and geopolitical concerns.”