TLDR
- President Donald Trump revealed plans to have the federal government purchase $200 billion in mortgage bonds, aiming to reduce mortgage rates and boost home affordability.
- Opendoor Technologies (OPEN) stock rose 12.1% in after-hours trading following Trump’s announcement, while Offerpad Solutions saw a 58% surge.
- Trump’s move comes one day after he proposed a ban on institutional investors buying single-family homes—an action that initially caused OPEN stock to drop sharply.
- Opendoor CEO Kaz Nejatian clarified the company is not an institutional investor and does not hold homes for rental use.
- The $200 billion purchase will tap cash reserves from Fannie Mae and Freddie Mac, though experts are skeptical about whether it will actually lower mortgage rates.
Opendoor Technologies stock climbed significantly in after-hours trading Thursday in response to President Donald Trump’s announcement that he would direct the federal government to buy $200 billion in mortgage bonds. Trump stated the purchase would reduce mortgage rates and make homeownership more accessible for Americans.
The stock jumped 12.1% once the news broke. Other housing-related stocks also rallied: Offerpad Solutions climbed 58%, Rocket Companies rose 7.1%, and UWM Holdings gained 7.2%.
Trump shared the announcement via a Truth Social post, noting 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 generated “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 sparked confusion about whether Opendoor would be affected.
CEO Kaz Nejatian quickly responded on X to clarify the company’s position. “We’re not institutional investors, our job is to help people buy homes. We don’t hold the homes!” he wrote.
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 building 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 instead of mortgage bond yields.
The announcement brought much-needed relief to Opendoor’s retail investor base. The stock had struggled in late 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 [redacted] 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.
