2024-03-28 19:15:05 ET
Summary
- Rocket is a mortgage banker, not a fintech, as its earnings are closely tied to its loan origination volume.
- I expect U.S. mortgage originations to improve but modestly because mortgage refinancing should remain historically low.
- The fact that the Federal Reserve is not supporting either the MBS nor the Treasury markets should keep mortgage rates above 6% for the foreseeable future.
What Rocket is – a mortgage banker, not a fintech
Rocket describes itself as follows in its 2023 10-K:
“We are a Detroit-based fintech company including mortgage, real estate, and personal finance business. We are committed to delivering industry-best client experiences through our AI-fueled homeownership strategy. Our full suite of products empowers our clients across financial wellness, personal loans, home search, mortgage finance, title, and closing.”
Read the full article on Seeking Alpha
For further details see:
Rocket Companies Is Materially Overpriced Considering The Interest Rate Outlook