Here's Why OpenDoor Stock Jumped 27% in July
Shares of OpenDoor (NASDAQ: OPEN) rose 27.1% last month, according to S&P Global Market Intelligence. Investors responded to important pieces of economic data that fueled optimism around the housing sector.
OpenDoor share prices are highly sensitive to interest rate expectations and economic indicators, as are many stocks in the real estate and homebuilding industries. The company acts as a middleman in the housing market, purchasing homes below market value and selling them quickly thereafter. It holds houses as inventory on its balance sheet, so its financial results can deteriorate quickly when the housing market sours. High mortgage rates and economic uncertainty drove housing demand lower over the past two years, challenging OpenDoor's sales volume and forcing the company to sell many residences at a loss.
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Source Fool.com
