What happened
Week to date, shares of home marketplace company Opendoor Technologies (OPEN +0.38%) were up 37.4% through Thursday's market close, according to data provided by S&P Global Market Intelligence, after investors jumped back into high-risk stocks.
The stock has cratered from a high of $11.39 in the last year all the way to under $1 per share, but it has recovered on the hope that the housing market won't be as bad as feared.
NASDAQ: OPEN
Key Data Points
So what
It certainly helps that investors are bidding up a lot of the tech stocks that have gotten crushed over the past year. But Opendoor does have some specific bullish news.
Mortgage rates have fallen below 6% for the first time since September, according to Mortgage News Daily, and the 10-year government bond interest rate has fallen 35 basis points to 3.40% as of Thursday's close.
Falling rates have the impact of making homes more affordable for buyers, which should help Opendoor's volumes and sale values. But the company still has a long way to go in proving that it has built a viable long-term business.
Now what
Since there wasn't company-specific news this week, I'm hesitant to read into the stock's move too much. Investors will hear from management on Feb. 23, 2023, when fourth-quarter results are released, and that's much more important than short-term rate news.
It's possible that economic data reported over the next week or two unwinds this move higher. And we don't know if a recession is still on the horizon this year. I am taking a wait-and-see approach with this company, but if it can survive the current downturn, it could be an interesting way to invest in the housing market.
