Real Estate Stocks Surge as 10-year Treasury Yield Falls

Real estate stocks continue their follow-through rally Thursday as treasuries continue to slide. 

What happened: Wednesday was a big day for real estate stocks with Opendoor Technologies Inc. OPEN jumping 17%. Thursday is bringing more of the same, with Opendoor gaining on an analyst upgrade. 

Keefe, Bruyette & Woods Inc. upgraded its outlook for Opendoor from Underperform to Market Perform. Analysts at the firm also increased the price target for the stock from $1.65 per share to $3.50 per share.

With this recent move, shares are ahead more than 300% for 2023.

Zillow Group Inc. ZG also surged yesterday, opening at $46.15 and closing up 8.84%. Through the first hour of trading Thursday, Zillow's run continued, with gains of 6.8%.

Redfin Corp. RDFN is following in the footsteps of Opendoor and Zillow, with gains of nearly 15% through the first hour of trading Thursday. 

Why it happened: Real estate stocks are surging thanks to the 10-year Treasury yield falling below 4% for the first time since August, now trading around 3.95%. This decrease is because of traders anticipating Federal Reserve rate cuts in 2024.

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