On May 5, the average interest rate on 30-year fixed-rate mortgages in the U.S. hit 5.27% -- a level last seen in 2009 . Rising rates have impacted those searching for a home, as high home prices and high mortgage rates have drastically increased the cost of buying one.
One mortgage lender already feeling the effects of higher rates is Rocket Companies (NYSE: RKT) . The company saw business boom in 2020 and 2021, when interest rates sank to historic lows and homeowners rushed to refinance. However, the business is vulnerable to these interest rate cycles, and rising mortgage rates have weighed on the business. With the stock down 50% from its 2020 IPO price, here's what the company can do going forward to become more resilient.
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Mortgage Rates Hit Their Highest Level Since 2009: Here's What That Means for Rocket Companies