Opendoor $OPEN ( ▲ 6.43% ) is rallying as fresh signs point to life returning to the US housing market. A surge in mortgage loan activity and chatter about a massive homebuilding initiative are giving investors new reasons to bet on a rebound in housing transactions.
For a company built on volume, that is exactly what bulls want to hear.
Mortgage Activity Is Heating Up
Rocket Companies CEO Varun Krishna said his firm is on track to post its highest mortgage loan volume and gain on sale in four years. That suggests lower rates and shifting borrower behavior are starting to unlock housing activity after a long freeze.
More mortgage originations typically mean more home sales, refinances, and moves. For Opendoor $OPEN, which buys and sells homes directly, a pickup in transaction flow is a key ingredient for growth.
Developers Float a Big Housing Plan
Separately, Bloomberg reported that major US developers are discussing a “Trump Homes” concept aimed at building up to one million homes, or roughly $250 billion worth of housing, to boost supply and affordability. Builders like Lennar $LEN and Taylor Morrison $TMHC were mentioned as being involved, and their shares moved higher as well.
The plan is still early and reportedly not under active consideration by the administration, but the idea of a large-scale push to increase housing supply is fueling optimism across housing-related stocks.
Opendoor’s High-Volume Bet
Opendoor’s new CEO, Kaz Nejatian, has outlined a turnaround strategy focused on higher volume and faster home flips at slimmer margins. The company has expanded its buying footprint across the Lower 48 states, positioning itself to benefit if transaction activity rebounds.
If mortgage growth and new supply efforts translate into more listings and more buyers, Opendoor $OPEN could finally see the kind of market environment its model depends on.