New York, Jan 12, 2026, 10:53 ET — Regular session
- Opendoor shares dipped in early trading following a sharp rally driven by policy news late last week
- Traders remain focused on the Trump administration’s mortgage-bond buying initiative and its impact on rates
- Tuesday’s U.S. CPI report will be the next key trigger for housing stocks sensitive to rate moves
Opendoor Technologies (OPEN.O) shares dropped 3.2% to $7.06 in Monday’s morning session, retreating from recent gains sparked by U.S. housing policy news. The stock swung between $6.94 and $7.25, with roughly 26.1 million shares traded by 10:53 a.m. ET.
The pullback is notable because Opendoor stands out as one of the clearest plays tied to mortgage rates: when borrowing costs drop, buyer activity typically rises, boosting housing turnover. President Donald Trump announced a $200 billion order for mortgage-bond purchases aimed at lowering housing expenses, a plan set to unfold through government-backed mortgage giants Fannie Mae and Freddie Mac, according to a Reuters report. (Reuters)
Opendoor surged nearly 19% on Friday as mortgage lenders and housing-related stocks climbed, fueled by optimism that the plan might shrink the gap between the 30-year mortgage rate and the 10-year Treasury yield — a key spread investors watch since it influences borrower costs. TD Cowen analysts called the move “not a surprise,” but Brian Jacobsen of Annex Wealth Management cautioned it might backfire if lower mortgage yields simply drive more demand into an already tight supply market. (Reuters)
Treasury Secretary Scott Bessent described the program as a move to counter the Federal Reserve’s $15 billion monthly runoff in mortgage-backed securities. William Pulte, head of the Federal Housing Finance Agency, said they kicked off with $3 billion in initial purchases; these securities are bonds backed by home loans. Reuters noted the average 30-year fixed mortgage rate has dropped to about 6.2% from nearly 8% earlier this year. (Reuters)
Housing stocks showed a mixed bag Monday. Rocket Companies (RKT.N) barely moved, UWM Holdings (UWMC.N) gained around 0.5%, but loanDepot (LDI.N) dropped roughly 2%. Homebuilders Lennar (LEN.N), D.R. Horton (DHI.N), and PulteGroup (PHM.N) all climbed between 1% and 2%.
But the policy shock works both ways. Even if mortgage rates drop, demand might surge ahead of supply, keeping prices stubbornly high — a headache for affordability and tricky for companies relying on steady price trends.
Opendoor’s risk is clear: borrowing costs rising sharply or home prices slipping could tighten margins on homes bought to flip. That would push the company to sell inventory with slimmer spreads. Traders also need to gauge how fast government bond purchases ramp up—and how much that actually affects mortgage rates.
U.S. stocks dipped Monday as the Trump administration ramped up pressure on the Federal Reserve, raising concerns over the central bank’s independence. “Any further meaningful moves towards less independence is not going to be viewed favorably by markets,” warned Jordan Rizzuto, CIO at GammaRoad Capital Partners. Attention now turns to big-bank earnings with JPMorgan kicking off reports Tuesday, alongside the eagerly awaited U.S. CPI data due the same day. (Reuters)
