The residential real estate market tightened up in 2022 and 2023. Many homeowners -- sitting on low-interest-rate mortgages -- decided against selling their homes after the Federal Reserve went through its quickest rate-hiking cycle in history in its effort to bring soaring inflation back down. The combination of lower inventory, higher mortgage rates, and persistently high asking prices froze real estate activity in the United States, and the market will likely take many years to thaw out.

Almost every company associated with residential real estate suffered over the last few years -- perhaps none more so than Opendoor Technologies (NASDAQ: OPEN). Shares of the company, which directly buys and sells single-family homes through its online platform, have sunk by 91% from their all-time high.

But with the Federal Reserve signaling it will start to reduce the benchmark federal funds rate in 2024, could Opendoor be set for a rebound over the next two years?

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Source Fool.com