New York, Jan 23, 2026, 12:51 PM EST — Regular session
- Opendoor shares dropped roughly 4% amid investor concerns over interest rates and housing demand
- A Reuters report said the $200 billion U.S. mortgage-bond buying program has so far yielded limited results
- Upcoming catalysts: the Federal Reserve’s decision next week, followed by Opendoor’s earnings report in late February
Opendoor Technologies shares dropped 4.4% to $6.14 on Friday, retreating from Thursday’s $6.42 close. The stock fluctuated between $6.06 and $6.48 amid heavy volume.
This move is significant since Opendoor operates at the intersection of mortgage rates and housing turnover, and the narrative around rates has grown more complicated. Investors have rapidly adjusted their expectations this month amid clashing policy announcements, bond yields, and the ongoing challenge of limited supply.
A Reuters report late Thursday revealed the Trump administration’s plan to buy $200 billion in mortgage-backed securities — bonds tied to home loan pools — hasn’t yet made a clear dent in housing costs. Economists and market experts say the real issue is limited housing supply. Joseph Brusuelas, chief economist at RSM US LLP, dismissed the move as “mostly an exercise in burning cash,” while Patricia Zobel of Guggenheim Investments noted it remains uncertain how much this will actually reduce prices for buyers. (Reuters)
Opendoor, the company that purchases homes straight from sellers, fixes them up, and then flips them, faces risks as higher borrowing costs cool demand. When rates climb, buyers tend to pull back, thinning the market fast. (Reuters)
Opendoor’s investor relations site showed no new announcements, with the latest press release dated Dec. 15. (Opendoor)
The competitive landscape remains a shadow over the group. Zillow pulled out of its home-flipping business back in 2021, deciding the risks outweighed the rewards. That move left Opendoor and smaller outfits like Offerpad as the primary iBuying players on public markets. (Reuters)
Friday’s retreat unfolded as broader markets showed signs of unease. According to a Reuters report, investors are bracing for next week’s Federal Reserve decision. Geopolitical tensions and a steep plunge in Intel weighed on risk appetite, despite modest gains in the S&P 500 and Nasdaq. (Reuters)
Opendoor faces risk if rates remain stubborn or move higher, while housing activity doesn’t rebound as equity bulls hope. That could mean longer holding periods, pricey pricing errors, and quickly shrinking spreads between buy and sell prices.
