Opendoor Technologies shares jumped more than 12% in after-hours trading. This surge followed former President Donald Trump’s announcement of a plan directing the U.S. government to purchase $200 billion in mortgage bonds.
The initiative intends to lower mortgage rates and increase housing affordability. Investors view this action as a significant tailwind for the real estate market and for companies like Opendoor.
The stock’s movement also provided relief after a period of volatility. This instability was caused by Trump’s separate proposal to ban institutional investors from buying single-family homes.
Opendoor CEO Kaz Nejatian clarified the company’s business model. He stated Opendoor helps people buy and sell homes, and does not act as a large-scale institutional landlord, a statement which appeared to reassure investors.