TLDR
- Opendoor (OPEN) stock jumped 12.1% after President Trump announced a $200 billion mortgage bond purchase to lower rates.
- Trump’s plan uses Fannie Mae and Freddie Mac cash reserves to improve housing affordability.
- CEO Kaz Nejatian clarified Opendoor is not an institutional investor following Trump’s proposed ban on institutional home purchases.
- Other housing stocks rallied, with Offerpad Solutions up 58%, Rocket Companies up 7.1%, and UWM Holdings up 7.2%.
- Wall Street maintains a Hold rating on OPEN stock with an average price target of $4.35.
Opendoor (OPEN) stock surged 12.1% in after-hours trading Thursday after President Donald Trump announced plans to buy $200 billion in mortgage bonds. Trump said the purchase would lower mortgage rates and make homes more affordable.
Opendoor Technologies Inc., OPEN
The rally came after OPEN stock had plunged Wednesday on news of Trump’s proposed ban on institutional investors buying single-family homes. That announcement created confusion about Opendoor’s business model.
CEO Kaz Nejatian quickly clarified the company’s position on X. “We’re not institutional investors, our job is to help people buy homes. We don’t hold the homes!” he wrote.
Trump made the announcement in a Truth Social post, stating he is giving “special attention” to the housing market. He criticized former President Joe Biden for ignoring housing affordability issues.
Trump Defends Fannie Mae Decision
The president said the $200 billion would come from cash reserves held by Fannie Mae and Freddie Mac. Trump defended his first-term decision not to sell these government-sponsored mortgage entities.
“Because I chose not to sell Fannie Mae and Freddie Mac in my First Term, a truly great decision, and against the advice of the ‘experts,’ it is now worth many times that amount,” Trump wrote.
Other housing stocks rallied on the news. Offerpad Solutions jumped 58%, while Rocket Companies gained 7.1% and UWM Holdings rose 7.2%.
Homebuilder stocks also rebounded, including D.R. Horton, Lennar Corp., and PulteGroup. Investment firms with real estate portfolios like Blackstone and Apollo Global Management saw gains.
Questions About Rate Impact
Market experts question whether the mortgage bond purchase will actually lower rates. Mortgage rates typically follow long-term Treasury rates rather than mortgage bond yields.
Opendoor shares have gained over 10% so far this year. The stock had struggled in late 2025, dampening enthusiasm among retail traders.
Wall Street Outlook
Wall Street analysts currently rate OPEN stock as a Hold. The consensus includes two Hold ratings, two Sell ratings, and one Buy rating. The average price target of $4.35 suggests a potential 32.4% downside from current levels.
Opendoor’s head of homebuilder partnerships noted that Trump’s ban targets landlords owning 100 or more homes. The company operates as a consumer platform rather than an institutional landlord.
He warned that a broader ban including build-to-rent properties could reduce housing supply. BTR now represents a meaningful portion of new single-family construction growth. Constrained supply would likely push prices higher.
