From 24/7 Wall St. · David Moadel · · 1m 10s
Housing Stocks Slide as Opendoor Drops 5%
Housing stocks fall together as Opendoor slides 5% while Zillow and Offerpad drop 3%.
In brief
Housing stocks fall together as Opendoor slides 5% while Zillow and Offerpad drop 3%. Opendoor Technologies stock fell 5% on Wednesday as housing stocks slid, driven by higher mortgage rates affecting its balance sheet inventory. Originally reported by 24/7 Wall St..
Housing Stocks Slide Together
Housing-linked stocks move lower in Wednesday morning trading as iBuyers take the sharpest hits and homebuilders pull back in step.
Opendoor Slides 5%
Opendoor Technologies stock is at $2.62, down 5%, while Zillow Group Class A stock is at $30.59, down 3%.
Why Opendoor Falls Harder
Opendoor buys homes and holds them on its balance sheet, so higher mortgage rates increase financing costs and slow home clearance.
The Rate Sensitivity
The benchmark 10-year Treasury note yield rose to 5.08%, up 2.19% over the past 24 hours, pressuring housing stocks.
Offerpad and Zillow React Differently
Offerpad carries homes like Opendoor, but Zillow operates a portal without holding inventory, so rate moves affect them differently.
What to Watch Next
Investors should monitor if the ITB fund pullback steepens and whether housing data or rate commentary impacts the session.
The bottom line
Opendoor Technologies stock fell 5% on Wednesday as housing stocks slid, driven by higher mortgage rates affecting its balance sheet inventory.
