Offerpad Rises 7%, Opendoor Gains 2% Amid Lower Treasury Yields
Stocks of iBuyers Offerpad (NYSE:OPAD) and Opendoor (NASDAQ:OPEN) rose sharply on September 2, with Offerpad up 7% to $4.40 and Opendoor gaining 2% to $3.09. The move followed a decline in the yield on the 10-year Treasury note, which eased mortgage market conditions and reduced inventory financing costs for these companies. The iShares U.S. Home Construction ETF (CBOE:ITB) gained only 0.7%, highlighting how homebuilders are less sensitive to interest rate changes compared to iBuyers like Offerpad and Opendoor. This is because builders control their own supply chains, while iBuyers rely on balance-sheet financing that makes them more vulnerable to shifts in rates. Offerpad reported a gross margin of 9.2% for the second quarter—its best since Q3 2023—and expects between $90 million and $100 million in revenue during its third-quarter guidance period.
Topics: iBuyers real_estate stock performance Treasury yields