Opendoor Technologies Roars Back to Life. Is A Bigger Rally Next?

Core Insights - Opendoor Technologies (NASDAQ:OPEN) stock experienced a significant increase of over 13%, closing at $7.97 per share, marking its first notable rise in a month ahead of anticipated interest rate cuts [1] - The stock's previous peak of $10.87 per share in mid-September was driven by meme stock activity rather than company fundamentals, leading to a subsequent decline as market sentiment shifted [2][3] - The recent rise in stock price was supported by increased trading volume exceeding 200 million shares, indicating participation from both retail and institutional investors, alongside modest improvements in housing figures [5] Market Context - The Federal Open Market Committee is expected to lower the federal funds rate by 25 basis points, establishing a new range of 3.75% to 4%, which would be the second consecutive cut [6] - Lower interest rates are projected to directly impact the housing market, with the average 30-year fixed mortgage rate potentially falling to 6% or below, resulting in significant savings for borrowers [7] - Current homeowner loans with rates under 4% from the pandemic period may limit available inventory, but easier rates could incentivize some homeowners to sell, potentially increasing national supply [8]