OPEN Stock Dips For Third Day: CEO Says 4.99% Mortgage Not A ‘Forever’ Deal

Nejatian said that its mortgage product, which is still in beta, is live only in limited locations.

• Opendoor’s stock fell more than 3% in overnight trading and is likely heading for its third straight day of declines if momentum holds.
• On Monday, Nejatian said that the company was now locking in a 4.99% mortgage rate for its homes for buyers.
• According to Forbes, as of March 4, the 30-year fixed-rate mortgage (FRM) averaged 6.1%, compared with last week’s 5.99%. 

Opendoor Technologies Inc. CEO Kaz Nejatian has moved to clarify the company’s 4.99% mortgage offer, saying it is neither permanent nor available to all buyers, just a day after announcing the below-market rate as part of a broader effort to scale its in-house mortgage business and reduce reliance on third-party intermediaries.

“And obviously, we are not promising 4.99% rates forever or to everyone. Again, we are early. But we are committed to solving this for American homeowners,” Nejatian said in a post on X on Tuesday, adding that the product remains in beta phase.

Opendoor’s stock fell more than 3% in overnight trading and is likely heading for its third straight day of declines if momentum holds during Wednesday’s trading. The shares have fallen nearly 15% so far this year, compared with the 264% surge in 2025.

In 2025, OPEN gained momentum as part of a broader meme-stock rally, boosted by investors' reactions to product announcements and strategic updates, as well as by Nejatian's appointment as CEO.

Nejatian Breaks Down The 4.99% Rate

The CEO noted that, structurally, at least 65 to 85 basis points of yield on any mortgage is the margin, and the aim is to reduce costs by cutting inefficiencies across the chain of companies, sales, and operations teams that touch a specific mortgage.

“We haven’t invented new math here. What we have done is say if our goal was to offer the lowest mortgage rate possible rather than make the most amount of money possible, what would we do? We are early but we have been able to automate away much of the flow and we believe we can automate the rest,” Nejatian said in a follow-up post.

“Also, Opendoor as the seller of the home has unique cost structures that allow us to do things (for example I’ve talked about this publicly, sitting around waiting for a mortgage to get funded by a bank is a relatively large cost for us today!),” he noted. “Our mortgage product is live only in limited flows in limited places. We are early. But, thus far, we think we are onto something.”

The Opendoor Mortgage Product

In February, during an exclusive interview with Stocktwits, Nejatian hinted at the development of its mortgage product, which is in beta, as the company pushes to enable itself to issue mortgages on homes it sells.

According to Forbes, as of March 4, the 30-year fixed-rate mortgage (FRM) averaged 6.1%, compared with last week’s 5.99%. 

The move to introduce the company’s own product comes on the heels of its expecting a 10% sequential decline in revenue for the current quarter. Wall Street analysts are concerned about the company’s gains from acquisitions and margins from improvements in newer cohorts that have yet to show up in Opendoor’s results.

How Are Stocktwits Users Reacting?

Retail sentiment on Opendoor was in the ‘bullish’ territory compared to ‘extremely bullish’ a week ago, with message volumes at ‘low’ levels, according to data from Stocktwits.

“This has huge potential if they are prepared to offer lower mortgage rates,” a bullish user on Stocktwits said.

Shares of Opendoor Technologies Inc. have soared 304% in the past 12 months.

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