US mortgage rates continued rising this month and are now at their highest level since January of last year. They have soared to 7.03%, much higher than this year’s low of 5.98%.
This rally will likely continue in the near term as US Treasury yields keep soaring. Treasuries have jumped because of rising US public debt and as the Federal Reserve signals that it will continue hiking interest rates. Mortgage rates are affecting some top stocks in the US. This article looks at a few of these stocks.
Opendoor’s Turnaround Meets Soaring Mortgage Rates
Opendoor (NASDAQ:OPEN) is one of the top companies being affected by the rising mortgage rates. This surge has happened at a time when the company’s management is already executing a turnaround after a prolonged period of slowdown.
Opendoor’s business is affected because of its business model: it buys houses and then sells them to customers. Most of its customers rely on mortgages, which have now become more expensive.
The most recent results showed that its business is already slowing, and this trend may continue as it faces major headwinds. Its revenue dropped to $883 million in the June quarter from $1.57 billion in the same period last year. Also, its homes sold plunged from 4,299 to 2,339, while its adjusted EBITDA moved from positive $23 million to a $4 million loss.
Opendoor’s stock has already plunged by 56% this year and by 70% in the last 12 months.
Rocket Companies May See Lower Originations
Rocket Companies (NYSE:RKT) stock has been in a strong sell-off this year. It bottomed at $11.47 on Thursday, its lowest level since May 2025. It has plunged by 50% from its highest level this year, with its market capitalization falling from $65 billion to $34 billion today.
Rocket Companies’ business is being affected by the rising mortgage rates that are leading to lower origination rates. Its last results showed that its adjusted revenue came in at $2.76 billion in the second quarter, down slightly from $2.8 billion in the first quarter.
The management predicts that its third-quarter revenue will be between $2.5 billion and $2.7 billion. Therefore, the company will likely continue to weaken as mortgage rates surge.
Lennar is Facing Mortgage and Cost Challenges
Lennar Corporation (NYSE:LEN) stock has also been in a strong sell-off in the past few months. It ended the week at $82.15, down by 33% from its highest point this year and by 50% from its all-time high.
The company is facing numerous challenges. Rising mortgage rates will affect demand for its houses. At the same time, it is contending with the rising cost of doing business, with the Producer Price Index (PPI) remaining above 3%.
The most recent numbers showed that Lennar’s revenue dropped to $8.04 billion in the August quarter from $8.8 billion in the same period last year. Its nine-month revenue dropped to $22.6 billion from $24.8 billion. Also, its net earnings fell to $283 million from $590 million in the August quarter of last year.
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