New York, January 11, 2026, 05:42 (EST) — Market closed
- Opendoor surged 13.2% on Friday, fueled by a housing rally linked to Trump’s proposal to buy mortgage bonds
- Treasury Secretary Bessent stated the objective is to counterbalance the Fed’s mortgage-bond runoff; the FHFA began with $3 billion
- This week’s rates data may determine if the rally sticks through Monday’s open
Opendoor Technologies Inc (OPEN.O) saw its shares jump 13.2% to close at $7.29 on Friday following President Donald Trump’s order to buy $200 billion in mortgage-backed securities. The White House says this move is designed to bring down mortgage rates and monthly payments. The stock hit a high of $7.91 during the session, with roughly 167 million shares changing hands. (Reuters)
This is crucial for OPEN since the company directly depends on housing turnover and borrowing costs. Opendoor purchases homes, keeps them on its books, and later resells them — with the speed of these transactions usually shifting alongside mortgage rates.
U.S. Treasury Secretary Scott Bessent explained the administration’s bond purchases aim to roughly offset the Federal Reserve’s monthly runoff of mortgage-backed securities, which are bonds secured by home loans, as the Fed reduces its holdings. He told Reuters the Federal Housing Finance Agency, responsible for overseeing Fannie Mae and Freddie Mac, kicked off the effort with an initial $3 billion purchase. (Reuters)
Bessent noted that while the purchases probably won’t lower mortgage rates outright, they might help by tightening the yield spread between agency mortgage bonds and U.S. Treasuries. He estimated the average 30-year fixed mortgage rate at about 6.2%, a sharp drop from 2024 highs but still well above the lows seen during the pandemic.
Friday’s action thrust Opendoor into the heart of a rate-sensitive rally, boosting mortgage lenders and homebuilders alike. Rocket Companies and UWM Holdings climbed, alongside gains from builders Lennar and D.R. Horton.
TD Cowen analysts noted the policy change might tighten the gap between the 30-year mortgage rate and the 10-year Treasury yield. This “spread” represents the additional yield lenders require to commit funds to a 30-year mortgage rather than a long-term government bond, significantly influencing borrower costs.
Jefferies noted mortgage rates would probably have to drop from around 6.2% into the mid- to high-5% range to lure more buyers and relieve affordability pressures. That helps explain the swift investor response.
Cheaper mortgages don’t guarantee lower home prices. “Every little bit will help push mortgage yields lower,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, told Reuters, but he cautioned that demand might outpace supply quickly.
For Opendoor, quicker demand means less time sitting on inventory and fewer discounts to sell homes. But a surge in demand driven by policy can push prices—and volatility—higher, while swings in interest rates leave housing stocks vulnerable.
The downside is clear: the bond-buy plan may pack less punch than traders expect, or inflation could push yields back up. If that happens, mortgage rates might hold steady around today’s levels — or climb higher — and the spike seen on Friday could quickly reverse.
When markets open Monday, traders will focus on how fast the FHFA expands purchases beyond the initial tranche and if mortgage spreads continue to narrow. Attention will also turn to the Federal Reserve’s policy meeting on Jan. 27–28, which could reshape expectations for interest rates. (Federal Reserve)
Tuesday’s December U.S. consumer price index, set for release at 8:30 a.m. ET, stands as the next key catalyst. It has the potential to shake Treasury yields—and mortgage rates along with them—which traders now see as critical for OPEN. (bls.gov)
