New York, January 21, 2026, 10:55 ET — The regular session is underway.
Opendoor Technologies Inc (OPEN) shares climbed roughly 2.1% to $6.53 in early Wednesday trading. The stock swung between $6.35 and $6.59, with around 9.3 million shares changing hands by 10:39 a.m. ET.
The stock has turned into a rapid gauge of Washington’s housing policy moves. On Tuesday, Trump signed an executive order aimed at limiting large institutional investors from snapping up single-family homes. He also ordered agencies to push more sales to individual buyers and to closely monitor big purchases. “Large institutional investors should not buy single-family homes that could otherwise be purchased by families,” the order stated. (Reuters)
Fresh demand data went the opposite way. The National Association of Realtors reported its pending home sales index — contracts that typically convert to sales within a month or two — dropped 9.3% in December, landing at 71.8. Economists had predicted a modest 0.4% gain. NAR chief economist Lawrence Yun said these numbers “have dampened the short-term outlook” and pointed out inventory sits around 1.18 million homes. The report also highlighted that mortgage rates tend to follow the 10-year Treasury yield, which has been volatile amid renewed tariff concerns. (Reuters)
Opendoor operates as an iBuyer, purchasing homes straight from sellers before flipping them. This approach links the company closely to housing turnover, short-term price fluctuations, and the financing costs of holding properties on its balance sheet.
Investors remain unsure about what exactly qualifies as a “large” investor and how strictly the White House will define the threshold. Should the crackdown focus primarily on landlords expanding rental portfolios, the impact on iBuyers might be minimal. But if the scope widens, the sector could face increased compliance expenses and a slowdown in transactions.
Markets remain unsettled. U.S. stocks recovered somewhat after Tuesday’s steep drop, as traders weigh Trump’s remarks at Davos alongside the looming threat of a fresh trade conflict with Europe. Art Hogan, chief market strategist at B Riley Wealth, noted that the president’s assurance he won’t pursue Greenland by force helped set a “floor” under the selloff. Still, he cautioned: “We’re certainly concerned about reigniting a trade war.” (Reuters)
Opendoor now faces a pressing question: can lower mortgage rates sustain buyer momentum amid growing policy uncertainty? The drop in December contracts points to a possible slowdown in closings soon, challenging a business model that relies on quick inventory turnover.
But the policy shift has its drawbacks. Tighter restrictions on institutional buying might reduce liquidity in certain markets, while climbing Treasury yields are set to drive mortgage rates higher, weighing on transaction volumes. If home prices falter, iBuyers could find themselves stuck with inventory at an inopportune moment.
Upcoming housing data includes NAR’s January existing-home sales report, due Feb. 12 at 10 a.m. ET, followed by January pending home sales on Feb. 19, also at 10 a.m. ET. Investors will be monitoring for additional guidance from federal agencies on enforcement of investor limits. (Nar)
