Opendoor (OPEN) Stock Rallies as Trump Announces $200B Mortgage Bond Purchase to Lower Rates

TLDR

• President Donald Trump announced plans to direct the federal government to purchase $200 billion in mortgage bonds to lower mortgage rates and make homes more affordable.
• Opendoor Technologies (OPEN) stock jumped 12.1% in after-hours trading following Trump’s announcement, while Offerpad Solutions surged 58%.
• Trump’s move comes a day after proposing a ban on institutional investors from buying single-family homes, which initially caused OPEN stock to plunge.
• Opendoor CEO Kaz Nejatian clarified the company is not an institutional investor and doesn’t hold homes for rental purposes.
• The $200 billion purchase would use cash reserves from Fannie Mae and Freddie Mac, though experts question whether it will actually lower mortgage rates.

Opendoor Technologies stock soared in after-hours trading Thursday following President Donald Trump’s announcement that he would direct the federal government to buy $200 billion in mortgage bonds. Trump said the purchase would lower mortgage rates and make homeownership more affordable for Americans.

Opendoor Technologies Inc., OPEN

The stock jumped 12.1% after the news broke. Other housing-related stocks also rallied, with Offerpad Solutions climbing 58%, Rocket Companies rising 7.1%, and UWM Holdings gaining 7.2%.

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 during his term.

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, calling it “a truly great decision” that has resulted in “an absolute fortune” for the government.

Confusion Over Institutional Investor Ban

The rally comes just one day after OPEN stock plunged on news of Trump’s proposed ban on institutional investors buying single-family homes. That announcement created confusion about whether Opendoor would be affected.

The company’s head of homebuilder partnerships added that Trump’s ban targets landlords owning 100 or more homes. Opendoor operates as a consumer platform rather than an institutional landlord that builds rental portfolios.

Questions About Rate Impact

Market experts are questioning whether the mortgage bond purchase will actually lower rates. Mortgage rates typically follow long-term Treasury rates rather than mortgage bond yields.

The announcement brought much-needed relief to Opendoor’s retail investor base. The stock had struggled in the latter part of 2025, dampening enthusiasm among meme stock traders.

Opendoor shares have gained over 10% so far this year. Other housing stocks also rebounded Thursday, including homebuilders D.R. Horton, Lennar Corp., and PulteGroup.

Investment firms with large real estate portfolios, such as Blackstone and Apollo Global Management, also saw their shares rise. The housing sector had been volatile this week as investors processed Trump’s series of housing-related announcements.

Wall Street analysts currently rate Opendoor 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 downside of 32.4% from current levels.

Nejatian noted that a broader ban including build-to-rent properties could actually reduce housing supply. BTR now represents a meaningful portion of new single-family construction growth, he said. Constrained supply would likely push prices higher rather than lower them.

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