Opendoor Stock Rallies As Rate Cuts Could 'Unfreeze' Housing Market

Opendoor Technologies, Inc. OPEN shares soared Friday as investors celebrated Federal Reserve Chair Jerome Powell's dovish remarks from Jackson Hole. OPEN stock is soaring. Watch the real-time chart here. J-Pow DeliversPowell took a surprisingly dovish tone in his Jackson Hole address, emphasizing that risks to the U.S. job market are increasing. He suggested that if the economy slows further, the central bank could consider cutting interest rates. Stocks rallied after Powell's unexpectedly dovish remarks, and Opendoor was among the companies that rode the wave higher.Investors ReactOpendoor's vocal supporter Anthony Pompliano took to X to celebrate Powell's remarks and what interest rate cuts could mean for the company. "Interest rate cuts are big for OPEN. Powell can unfreeze the housing market," Pompliano wrote. Opendoor promoter Eric Jackson had his own take on potential rate cuts with an interesting twist–he was standing in front of music star Drake's house "until he buys at least ONE share of OPEN."Jackson posted a video from outside Drake's house on X and wrote: "Day 3 outside ⁦Drake⁩ 's house. Jerome Powell just signaled he's cutting rates & OPEN ripped +30% today. Housing cycle turning, cult stock rising. Let's ride. 🚀📈."Lower Rates To Boost OpendoorLower interest rates could benefit Opendoor in several ways. Boosted Housing Demand: Lower mortgage rates reduce the monthly cost of buying a home and would bring more buyers into the market. This trend increases the volume of home sales, directly benefiting Opendoor which profits from buying and reselling homes quickly. Easier Financing: Buyers could secure bigger loans at lower costs, expanding the pool of potential customers. This could boost Opendoor's transaction volume and can also lift home prices, improving margins when Opendoor sells inventory. Market Liquidity: Cheaper financing encourages both buyers and sellers to act, loosening housing market conditions that have been frozen by high rates. OPEN Stock Price: Opendoor shares rallied 20% to $4.32 on heavy trading volume at the time of publication Friday. Opendoor stock has gained more than 200% over the past six months, according to data from Benzinga Pro. Retail Investors’ Top Stocks With Earnings This Week: Faraday Future, XPeng, Walmart And More Photo: Shutterstock