Rocket Companies $RKT ( ▲ 8.42% ) is catching a bid as signs emerge that the frozen US housing market may finally be starting to thaw. Shares jumped after CEO Varun Krishna said the company is on track for its highest mortgage loan volume and gain on sale in four years.
Lower rates are doing what years of wishful thinking could not.
The Lock-In Effect Is Loosening
Krishna said Rocket was “right there to capitalize” as mortgage rates eased, helping revive borrowing activity. After a long stretch where homeowners were stuck in ultra-low pandemic-era mortgages, more borrowers are now facing rates above 6% than below 3%, according to Realtor.com.
That shift matters. When fewer people are locked into rock-bottom rates, they are more willing to move, refinance, or take out new loans. That directly feeds mortgage originators like Rocket Companies $RKT, which depend on transaction volume to drive revenue.
A Four-Year High in Sight
The CEO’s comments point to a meaningful rebound in both loan production and profitability from selling those loans into the secondary market. If Rocket hits those targets, it would mark the strongest performance since before higher rates chilled the housing sector.
Investors appear to be betting this is not just a one-month bounce, but the early stages of a broader recovery in housing activity. If mortgage demand keeps improving, lenders like Rocket Companies $RKT could finally see a sustained turnaround after a painful rate-