Opendoor shares dropped 4% as the 10-year Treasury yield hit 5%, signaling continued headwinds for the iBuying sector and housing-related stocks amid elevated borrowing costs.
Opendoor fell 4% due to rate hike concerns impacting its iBuying model.
Zillow slid 2% as rising Treasury yields pressured housing-related stocks.
Home construction ETF down 0.85% amid rate hike jitters.
S&P 500 ETF slid 0.44% as broader market weakened.
Offerpad held steady despite sector weakness, showing relative resilience.
Opendoor Technologies shares fell 4% to $2.68 on Tuesday as rising Treasury yields and high mortgage rates pressured the housing sector. The 10-year Treasury yield climbed to 5.01%, dampening investor sentiment for iBuying models and home-related equities. While Zillow shares also declined by 2%, Offerpad remained resilient, holding steady at $3.63 despite the broader market downturn.
Rising Treasury yields increase borrowing costs and mortgage rates, which can slow housing transaction volumes and pressure the profitability of iBuying models and real estate platforms.