New York, March 9, 2026, 15:44 EDT
Opendoor Technologies (OPEN) shares were choppy on Monday, slipping down to $4.74 at one point before rebounding to trade near $5.07 in the afternoon. The moves came as investors took stock of the company’s fresh 4.99% mortgage offer.
This shift is significant for Opendoor, the biggest U.S. iBuyer—meaning it snaps up homes directly from sellers, then flips them—because it’s up against a housing market where the average 30-year fixed mortgage rate is holding at 6.00%. The company is aiming to push adjusted net income into the black by the end of 2026.
Kaz Nejatian, the chief executive, posted on X that the mortgage product remains in beta—he called it “very early days.” Later, he clarified in another post that Opendoor isn’t guaranteeing 4.99% rates “forever or to everyone.” The company has also notified investors that Nejatian’s X account counts as an official channel for material disclosures. X (formerly Twitter)
MarketWatch noted the deal only applies to buyers using Opendoor’s platform, with no points or upfront rate-lowering fees attached. Daniel Lewis at Orange Capital weighed in, suggesting Opendoor must be snapping up homes under market value, offloading them at a premium, or else taking “a real hit” to its returns and balance sheet. MarketWatch
Opendoor reported in its Feb. 19 earnings release that fourth-quarter revenue dropped to $736 million, down from $1.084 billion the previous year. The full-year net loss widened sharply, hitting $1.3 billion compared to $392 million a year ago. According to the company, weekly acquisition contracts have now jumped to more than four times their level at the end of the third quarter. Looking to the first quarter, Opendoor projected revenue would slip about 10% from the last period and expects an adjusted EBITDA loss in the low-to-mid $30 million range.
UBS’s Stephen Ju described the most recent numbers as “another reset point.” Opendoor, he argued, is still on the hook to prove it can actually turn a steady profit on every house it sells—that’s the core challenge as executives lean on lower-cost financing to speed up sales. Investing.com
Lower mortgage rates could help boost transaction volume, but there’s a catch: margins might take a hit if home prices slide or borrowing costs don’t come down. Opendoor flagged in its annual filing that it relies heavily on debt to fund operations, finishing 2025 with $1.1 billion in asset-backed debt and $197 million in convertible notes on the books.
The squeeze from competitors lingers. Last month, Offerpad—a smaller player—posted its results for the fourth quarter and all of 2025. Zillow, for its part, ditched home flipping back in 2021, citing excessive swings in its earnings and balance sheet.
