New York, Jan 20, 2026, 10:03 EST — Regular session
- Opendoor shares dropped roughly 4% in early trading, underperforming the wider U.S. market selloff.
- Investors weighed affordability and mortgage-rate signals, putting housing-linked stocks under pressure.
- On deck: crucial U.S. housing figures coming Wednesday, plus Opendoor’s earnings report from late February.
Opendoor Technologies shares slid roughly 4% Tuesday morning, pulling back alongside other housing-related stocks as U.S. markets opened sharply lower.
The shift is crucial since Opendoor operates right at the intersection of mortgage rates and home demand. Changes in rates can quickly flip its business: it purchases homes, holds them as inventory, then flips them for resale.
Homebuilding updates shaped the mood. D.R. Horton beat estimates but relied heavily on incentives, such as mortgage-rate buydowns, where the builder covers upfront costs to lower buyers’ mortgage rates, to sustain orders. Executive Chairman David Auld said, “We expect our sales incentives to remain elevated in fiscal 2026.” (Reuters)
Mortgage rates have dipped from the peaks seen last year, yet the market remains uncertain if that drop will trigger a broad rebound in home buying. Freddie Mac reported the average 30-year fixed rate at 6.06% on Jan. 15, marking its lowest point in over three years, according to Reuters. (Reuters)
Opendoor slid as some peers also stumbled: Zillow dipped roughly 3%, Offerpad dropped around 5%, and a homebuilders ETF lost about 1%. Known for behaving like a leveraged wager on housing liquidity, Opendoor often swings sharply both ways.
The broader market was pressured from the start. Wall Street’s key indexes dropped sharply after President Donald Trump escalated tariff threats targeting Europe over Greenland, Reuters reported. (Reuters)
Housing policy news has pushed the sector recently. Earlier this month, housing stocks surged following Trump’s announcement of a $200 billion mortgage bond buying plan. One strategist told Reuters, “Every little bit will help push mortgage yields lower.” (Reuters)
That downside risk for Opendoor remains. If affordability stays squeezed or interest rates climb again, demand could drop fast. The company might end up holding onto homes longer, where even small price shifts can hurt when you’re stuck with inventory and financing costs.
Traders are set to focus on Wednesday’s U.S. housing starts and building permits data, along with December’s pending home sales index from the National Association of Realtors. (CME Group)
Opendoor’s next major event is earnings, with Nasdaq estimating a report date near Feb. 26, though the company hasn’t officially set a date. Investors will be zeroing in on inventory figures, unit economics, and any fresh insights into spring demand. (Nasdaq)
