Oil Prices Are Falling, but the Fed's Decision to Hold Interest Rates Steady May Challenge Opendoor Stock
The real estate start-up is making progress on its recovery.
Oil Prices Are Falling, but the Fed's Decision to Hold Interest Rates Steady May Challenge Opendoor Stock
Overview
Oil prices have already started to fall since President Trump signaled the end of the war with Iran. Lower oil prices mean lower costs for companies and an easing of pressure for consumers. However, inflation is still rampant, and the Federal Reserve just made a decision to keep interest rates steady. Although that wasn't unexpected, since it's meant to stem inflation, it could stem economic activity.
Image source: Getty Images.
One place that shows up big is in the housing market. Higher mortgage rates make it more challenging for people to buy homes, and fewer people sell when it's harder to buy, which means there's less supply in the market. Since Opendoor Technologies (NASDAQ: OPEN) is still building itself up as a company, it has been battered by the high-interest-rate environment, and high rates could continue to plague it.
Details
Source
Originally published at www.fool.com.
