Redfin CEO Makes Shocking Comment on Mortgage Rates

In a surprising turn during Redfin's second-quarter earnings call, CEO Glenn Kelman made headlines with his unconventional response regarding the company's contingency plans if mortgage rates do not decline. Instead of the typical corporate jargon, Kelman quipped, “Plan B is to drink our own urine or our competitors’ blood, stay in the foxhole.” This candid remark stood out in a call usually characterized by optimistic forecasts, as analysts scrutinized the broader housing market's future. Despite the company reporting better-than-expected earnings, Kelman expressed skepticism about the housing market's recovery. He likened the current situation to “The Twilight Zone,” noting the unprecedented speed at which mortgage rates have dropped without a corresponding surge in market activity. He emphasized a cautious optimism, stating, “We just have to believe that it will [go up],” while acknowledging that he is not relying on this outcome. Kelman reiterated Redfin's readiness to adapt, asserting that the company is prepared to capture market share regardless of whether conditions improve or stagnate. He referenced a previous earnings call where he had warned against over-reliance on falling rates, reinforcing his commitment to maintaining a proactive stance in a challenging market. As the call concluded, Kelman expressed regret over his earlier comments, stating, “I wish I just hadn’t said that. I’m a lover, not a fighter,” highlighting the tension between candidness and corporate decorum in high-stakes financial discussions.