(Reuters) - Consumer credit ratings firm Equifax (NYSE:EFX) forecast third-quarter revenue below Wall Street estimates on Wednesday as higher-for-longer interest rates continue to derail recovery in mortgage markets.
Loan demand has slumped this year across products, from mortgages to auto and credit cards, as the U.S. Federal Reserve keeps rates at their highest levels in decades in a bid to bring inflation back under its 2% target.
The move has hurt consumer credit ratings firms that rely on borrowers checking their credit scores to confirm their eligibility.
Equifax expects revenue between $1.43 billion and $1.45 billion in the three months ended Sept. 30, the mid-point of which came in below Wall Street's average expectation of $1.45 billion, according to LSEG data.
In the second quarter, its revenue rose 9% to $1.43 billion, compared with estimates of $1.42 billion.
Adjusted profit came in at $1.82 per share for the period ended June 30, compared with Wall Street's expectation of $1.73 per share.