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Mortgage rates are back on the rise due to a strong performance in retail sales and labor market data, along with positive monthly inflation readings. This has raised the prospect of the Federal Reserve continuing its interest rate hiking campaign through the summer.
As a result, existing home sales are expected to suffer, which may impact Opendoor Technologies Inc OPEN earnings, which will be reported on Thursday after the market closes.
Before getting into Opendoor expectations, here are some economic data that directly correlates with Opendoor’s business model.
In January, U.S. existing home sales reached their lowest point in more than 12 years.
Although the pace of decline has slowed, it has prompted cautious optimism that the housing market slump could be nearing its bottom. The Tuesday report from the National Association of Realtors also showed the smallest increase in annual house prices since 2012, which could lead to improved affordability.
Read Also: What’s More Expensive: Buying A House, Or Building One?
The NAR report also showed the smallest increase in annual house prices since 2012, which should help to improve affordability.
Now to Opendoor.
Opendoor is the largest iBuying business in the U.S. by properties acquired.
iBuying involves purchasing properties from consumers and selling them at a profit, with service fees charged for the transaction. Opendoor offers a service it says eliminates seller uncertainty, based on the property’s current condition, for a 5% service fee.
With 12 consecutive months of slowing existing home sales, expectations for Opendoor’s earnings are not too bright.
By The Numbers: Analysts predict the company will report a loss of 78 cents per share on revenues of $2.51 billion (-34.3% year-over-year), according to data from Benzinga Pro.
OPEN Price action: Shares of Opendoor are trading down 5.95% to $1.74 ahead of earnings, according to Benzinga Pro.
Read Next: Just How Bad Is The Housing Market? Trillions In Losses, Biggest Percentage Drop Since 2008
Photo: Courtesy Opendoor
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Image and article originally from www.benzinga.com. Read the original article here.