Amid consecutive federal rate hikes, mortgage rates have soared to record highs in 2022. According to Freddie Mac, the average 30-year, fixed-rate mortgage rose to…
7.08% for the week ending November 10, 2022. Housing experts believe mortgage rates will average around 5% to 6% in 2023, and some think it will hit higher.
Consequently, consumer confidence in the housing sector has dropped drastically. According to a monthly survey by Fannie Mae, in October, just 16% of consumers opined that now is an ideal time to buy a home.
“As continued affordability constraints reduce homebuyer demand, and homeowners become reluctant to sell at potentially reduced prices, we expect home sales to slow even further in the coming months, consistent with our forecast,” wrote Doug Duncan, Fannie Mae’s chief economist.
Moreover, according to the National Association of Home Builders, sales of newly built homes dropped below pre-pandemic levels in September, and cancellations increased twice year-over-year.
Opendoor Technologies Inc. (OPEN)
OPEN operates a digital platform for residential real estate in the United States. The company’s platform enables consumers to buy and sell a home online. It also provides title insurance and escrow services.
On October 20, 2022, Levi & Korsinsky, LLP notified OPEN investors of a class action securities lawsuit that aims to recover their losses due to alleged securities fraud.
OPEN’s negative EBITDA and net income margins of 4.14% and 6.93% are lower than the industry average of 56.35% and 17.37%, respectively.
OPEN’s revenue came in at $3.36 billion for the third quarter that ended September 30, 2022, up 48.3% year-over-year. However…
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