Opendoor Technologies Inc (NASDAQ:OPEN) saw its stock soar by 18.22% in intraday trading, as investors reacted positively to signals of potential interest rate cuts from Federal Reserve officials. The company, which operates in the real estate sector, stands to benefit significantly from the shifting monetary landscape.

The primary driver behind Opendoor's stock surge is the market's increased confidence in upcoming rate cuts. With a 77% probability assigned to a December rate cut and Goldman Sachs forecasting a terminal rate of 3%-3.25% by 2026, Opendoor's business model is poised for a substantial boost. The company, which relies heavily on floating-rate debt to finance its housing inventory, could see an immediate widening of its unit-level margins as daily holding costs decrease.

Furthermore, the potential breaking of the "lock-in effect" in the housing market could reignite transaction volumes for Opendoor. As mortgage rates potentially trend lower, more homeowners may be willing to sell, providing Opendoor with increased inventory and transaction opportunities. This combination of lower financing costs and higher transaction volumes presents a compelling turnaround opportunity for the company, explaining the strong investor enthusiasm reflected in today's stock movement.