Opendoor (OPEN) Stock Is Flying High On Monday: Here's Why Fed News Changes Everything

Benzinga

Opendoor shares jumped as traders priced in a higher chance of a December Fed rate cut, a shift that could reduce the company’s floating-rate debt costs and improve margins. Lower rates may also ease the housing lock-in effect, boosting transaction volume and efficiency. The stock closed up nearly 14% at $7.69.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02Open Door technology shares climbed on Monday as traders repriced the company's outlook

00:06following dovish signals from Federal Reserve officials that according to Benzinga Pro.

00:10Markets now assign a 77% probability to a December rate cut.

00:15Goldman Sachs economist John Hatsias expects rates to fall toward a 3% terminal range by 2026.

00:21Open Door relies on floating rate debt to finance large housing inventories

00:25so lower rates would cut daily holding costs and lift margins.

00:28A move toward that terminal range could also ease the lock-in effect that slowed home sales,

00:33helping Open Door increase transaction volume and better leverage its cost structure.

00:37Shares rose 13.93% to close at $7.69 on Monday.

00:42For all things money, visit Benzinga.com.

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