We’ve rate locked 4.99% mortgage on Opendoor homes for buyers. The product is in beta still. We have a lot to learn. Going well. Very early days.

Given that this got a lot of questions. Let me be helpful. Again. This is early. We have a lot to learn. But structurally at least 65-85 bps worth of yield of any mortgage is the margin and inefficiency that goes to the chain of companies and sales and ops people that touch that mortgage. You reduce that, you reduce the costs. There are also obviously scale advantages. We haven’t invented new math here. What we have done is say if our goal was to offer the lowest mortgage rate possible rather than make the most amount of money possible, what would we do? We are early but we have been able to automate away much of the flow and we believe we can automate the rest. Also, Opendoor as the seller of the home has unique cost structures that allow us to do things (for example I’ve talked about this publicly, sitting around waiting for a mortgage to get funded by a bank is a relatively large cost for us today!). Our mortgage product is live only in limited flows in limited places. We are early. But, thus far, we think we are onto something.

And obviously we are not promising 4.99% rates forever or to everyone. Again, we are early. But we are committed to solving this for American homeowners.