Source: Insider —
It’s time to purchase stock in Zillow, according to Bank of America which lifted its rating and price outlook on the property-technology firm as it foresees the housing market improving after a difficult 2022.
Elevated interest rates stemming from the Federal Reserve’s fight against decades-high inflation and home affordability at its lowest in 40 years make the investment bank cautious on real estate trends in 2023.
“However, declines for mortgage purchase applications … have stabilized since October and unless rates materially spike, home volume trends should start to improve in 2Q23,” research analyst Curtis Nagle wrote in a note published Monday.
BofA issued a double-upgrade of its Zillow rating to buy from underperform and bumped up its price objective to $42 a share from $22.
