How do Rising Mortgage Rates Affect LendingTree? (TREE)

Rising interest rates are seen as a threat to stocks broadly, but they have a unique impact on LendingTree’s (TREE) business.
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As a loan referral service, TREE depends on demand for home loans and mortgage refinancing for much of its revenue. Lower demand for mortgages has been cited by both management and analysts as a concern going forward. Conversely, TREE sees low interest rates as a major driver of business for the company. In the firm’s second quarter earnings call earlier this year, CEO Doug Lebda noted “when rates drop, we're flooded with volume and … customer acquisition costs fall.”