Opendoor (OPEN) Stock Surges 12% After Trump’s $200B Mortgage Bond Plan

TLDR

• President Trump announced plans to purchase $200 billion in mortgage bonds using Fannie Mae and Freddie Mac cash reserves to lower mortgage rates
• Opendoor (OPEN) stock jumped 12.1% in after-hours trading on the news, while Offerpad Solutions surged 58%
• The rally came one day after OPEN stock plunged on Trump’s proposed ban on institutional investors buying single-family homes
• CEO Kaz Nejatian clarified Opendoor is not an institutional investor and doesn’t hold homes for rental purposes
• Market experts question whether the bond purchase will actually lower mortgage rates since they typically follow Treasury rates

Opendoor Technologies saw its stock price jump 12.1% in after-hours trading Thursday. The move came after President Trump announced a $200 billion mortgage bond purchase plan.

Opendoor Technologies Inc., OPEN

Trump posted on Truth Social that he would direct the federal government to buy mortgage bonds. He said the move would lower mortgage rates and make homes more affordable for Americans.

The announcement brought immediate relief to OPEN investors. The stock had faced pressure just one day earlier after Trump proposed banning institutional investors from buying single-family homes.

Opendoor wasn’t alone in the rally. Offerpad Solutions climbed 58% on the news. Rocket Companies rose 7.1%, and UWM Holdings gained 7.2%.

Trump said the $200 billion would come from cash reserves held by Fannie Mae and Freddie Mac. He defended his decision during his first term not to sell these government-sponsored entities.

The president called it “a truly great decision” that resulted in “an absolute fortune” for the government. He criticized former President Biden for ignoring housing affordability issues.

Clearing Up The Confusion

The stock’s Thursday surge stands in stark contrast to Wednesday’s decline. OPEN had plunged after Trump proposed banning institutional investors from purchasing single-family homes.

CEO Kaz Nejatian moved quickly to address concerns. He posted on X that Opendoor is not an institutional investor.

“We’re not institutional investors, our job is to help people buy homes. We don’t hold the homes!” Nejatian wrote.

The company’s head of homebuilder partnerships provided additional context. Trump’s ban targets landlords owning 100 or more homes. Opendoor operates as a consumer platform, not an institutional landlord building rental portfolios.

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. Constrained supply would likely push prices higher rather than lower them.

Rate Questions Remain

Market experts are expressing skepticism about the plan’s effectiveness. Mortgage rates typically follow long-term Treasury rates rather than mortgage bond yields.

The question is whether $200 billion in purchases will meaningfully move the needle. Some analysts remain unconvinced the plan will deliver lower rates as promised.

Wall Street currently rates Opendoor stock as a Hold. The consensus includes two Hold ratings, two Sell ratings, and one Buy rating.

The average price target sits at $4.35. That suggests a potential downside of 32.4% from current levels.

Other housing stocks also rebounded Thursday. Homebuilders D.R. Horton, Lennar Corp., and PulteGroup all saw gains.

Investment firms with large real estate portfolios benefited too. Blackstone and Apollo Global Management shares both rose on the housing news.

Opendoor shares have gained over 10% so far this year. The stock had struggled in the latter part of 2025, dampening enthusiasm among meme stock traders.