Zillow may be bringing new technology to the housing sector but there's another way it might be compared to Tesla: A parabolic rise that may be in part due to a short squeeze.
Two stocks that tripled in price since the start of 2013 are real estate websites Zillow and Trulia.
Are sunny days ahead for real estate search sites or are dark clouds on the horizon?
Higher interest rates should mean fewer people interested in buying a home. Yet these two companies are up more than 50% in the last three months. Meanwhile, mortgage rates have been rising.
Since December, rates on a 30-year fixed mortgage have gone up 100 basis points (one percent) to 4.36%, with half of that increase happening since the first week of summer. And, with the Fed potentially tapering its $85 billion per month bond buying program as soon as next month, it doesn’t look like rates will return to their lows any time soon.
One line of thinking is that the quick hike inRead More »from Is this the Tesla of home stocks?