Shares of real estate services companies dropped Friday, despite better-than-expected new home sales data, as the strong data sent 10-year Treasury yields TMUBMUSD10Y, 3.953% to 3 1/2-month highs. Shares of Redfin Corp. RDFN, -6.63% dropped 6.3%, Zillow Group Inc. Z, -2.65% ZG, -2.57% slid 2.9%, RE/MAX Holdings Inc. RMAX, -3.31% shed 3.7%, Anywhere Real Estate Inc. HOUS, -3.89% fell 3.5% and Douglas Elliman Inc. DOUG, -2.93% gave up 2.3%. Meanwhile, the S&P 500 SPX, -1.05% was down 1.5%. Rising Treasury yields can hurt the real estate market because it leads to higher mortgage rates, which makes lowers housing affordability. And earlier this week, data showed that 30-year mortgage rates rose to the highest levels seen since November.
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