What happened
Shares of Rocket Companies (NYSE:RKT) leapt 12.4% on Monday, fueled by a buoyant housing market and rising demand for mortgage-related services.
So what
On Friday, a report from the National Association of Realtors showed that sales of existing homes in July surged 9% year over year and 24% compared to June. The housing market is being supported by historically low mortgage rates, which fell below 3% for many borrowers in July. More new home sales mean more mortgage originations — and more business for Rocket Companies.
Low interest rates have also led to a surge in demand for mortgage refinancing. This, too, has been a boon for Rocket Companies.
Now what
Rocket Companies announced preliminary second-quarter results on Aug. 14, and they were impressive, to say the least. The recent initial public offering (IPO) said its net revenue soared 437% year over year to $5 billion, driven by a 126% surge in loan origination volume, to $72.3 billion.
Investors can expect to hear more about the state of the housing market from the nation’s largest mortgage lender’s leadership team during Rocket Companies’ upcoming earnings conference call, which is scheduled for Sept. 2 at 4:30 p.m. Eastern time.
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