New York, Jan 24, 2026, 07:27 EST — Market closed
- Opendoor shares dropped roughly 6% on Friday, closing at $6.01.
- Investors zeroed in on mortgage-rate cues amid uncertainty about how Washington’s mortgage-bond buying spree might shake things up.
- The next major rate move hinges on the Federal Reserve’s meeting set for Jan. 27-28.
Opendoor Technologies shares dropped 6.4% on Friday, closing at $6.01 after fluctuating between $5.95 and $6.40 during the session. In after-hours trading, the stock hovered near $6.03, with roughly 63.9 million shares changing hands. (Investing)
The pullback is significant since Opendoor has turned into a quick, rate-sensitive play: easing mortgage rates often boost housing demand, lifting stocks linked to home buying. But if rates hold steady, sentiment shifts sharply.
A Reuters report late Thursday found little evidence that the administration’s $200 billion mortgage-backed bond buying program has significantly cut housing costs. Joseph Brusuelas, chief economist at RSM US LLP, described the effort as “mostly an exercise in burning cash.” Patricia Zobel from Guggenheim Investments added, “It’s not clear to me how much this will materially lower housing prices for consumers.” (Reuters)
Mortgage-backed securities, or MBS, are bonds secured by home loans. The report showed the average 30-year fixed mortgage rate ended 2025 at 6.15%. It slipped to 6.06% right after the bond-buy order but crept back up to 6.09% by Thursday, according to Freddie Mac data.
Opendoor operates an online platform where homeowners sell their properties straight to the company, which then flips the homes. It also provides “capital-light” marketplace and listing services. (Reuters)
The model shines when borrowing costs drop and homes sell quickly. But it can backfire if rates climb, listings stall, or the company must slash prices to offload inventory.
The downside remains straightforward: mortgage rates stop declining, and the policy efforts on MBS purchases barely nudge yields. Should longer-term Treasury yields climb, mortgage rates could rise too, dimming the housing “green shoots” trade.
The Federal Reserve’s next key event is the meeting scheduled for Jan. 27-28. The policy decision comes out at 2:00 p.m. ET on Jan. 28, followed by a press conference at 2:30 p.m. ET. (Federalreserve)
