Real estate stocks, including Opendoor (OPEN), Redfin (RDFN), and Zillow (Z), were the worst-performing sector in the market following Donald Trump’s presidential election win.

John Burns Research & Consulting director of research and managing principal, Rick Palacios Jr., tells Seana Smith that the sharp rise in mortgage rates — now at 7% — has been a concern for both homebuilders and homebuyers.

Palacios Jr. emphasized that homebuilding clients are not planning their businesses based on election results. After conducting a survey of nearly 300 homebuilders, he found that the “homebuilders resale market would much rather prefer a steady, strong economy, even if it's at slightly elevated rates than super low rates.”

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This post was written by Cindy Mizaku.