Opendoor Technologies Inc (NASDAQ:OPEN) shares are trading higher on Wednesday. The CEO of the real estate iBuying platform said he fully supports President Donald Trump’s 50-year mortgage plan, which aims to ease the housing affordability crisis in America.
- OPEN is trading at elevated levels. See what is driving the movement here.
What To Know: During a Tuesday appearance on Fox Business’ “Making Money,” CEO Kaz Nejatian characterized the administration’s mortgage initiative as bullish for the real estate industry. According to Nejatian, the action tackles student loan debt, one of the largest obstacles facing prospective homeowners.
Nejatian cited the heavy burden of student loans on young adults when discussing the difficulty that the average person currently faces when purchasing a home. He criticized traditional mortgages for not meeting the needs of regular Americans and proposed an extended mortgage term that will “allow people to get their foot in the door.”
"If you believe that America is better when people own their homes, it is incredibly important to try a lot of different things to get people into homes," Nejatian said, praising the administration’s willingness to try new tools to improve housing access.
Prominent experts, however, have opposed the plan. Betsey Stevenson, once a member of former President Barack Obama’s Council of Economic Advisers, cautioned about the high costs involved, pointing out that since payments will be riddled with interest, people will be making very little equity contributions to their homes.
According to Brandon Avedikian, a realtor and the founder of Aspire Commercial, buyers would be better off renting rather than taking out a 50-year mortgage while undergoing significant repairs.
The news comes after Nejatian announced earlier this week that he would purchase $1 million worth of company shares, declaring on X that he and his family would buy stock on the first day regulations allowed them to do so. The planned purchase announcement came after Opendoor released its third-quarter results.
JPMorgan analyst Dae Lee maintained an Overweight rating and price target of $8 for December 2026 in response to the quarter, viewing the company’s current reset as essential preparation for long-term profitability under new management’s volume-driven strategy.
OPEN Price Action: Opendoor shares were up 1.30% at $8.58 at the time of publication on Wednesday, according to Benzinga Pro.
Read Next:
- Opendoor CEO Pledges $1 Million Stock Buy -- Puts His Money Where His Mouth Is
Image: Around the World Photos/Shutterstock
