However, analysts warn that mortgage originations will slow down even while housing is still hot.
The housing market and mortgage markets are closely related, of course. Is there some concern that would make RKT stock not work out despite the fundamentals looking so good? Indeed, 15% of the company’s float has been sold short at the moment, which suggests that there is a seriously bearish view on Rocket. With a stock this cheap, it’s helpful to look at risk factors. However, refinancings are where the trouble for Rocket starts.
#Rocket stock forum driver#
Home purchases have been the big driver of improving business thanks to the post-pandemic boom. That’s a bargain in general, and especially in the current market where most stocks have soared in recent months.Īn important thing to realize is that Rocket gets business both from home purchases and from refinancings. As a result, it is currently trading at just an 8.7x price-to-earnings ratio. For other families, the lockdowns showed the benefits of buying a house with another bedroom or two.Īdd it all up and Rocket has done record business recently. For many people, that means moving from an apartment to a starter home. After being stuck at home for the better part of a year, Americans are looking to improve their living conditions.
The Covid-19 pandemic created an unprecedented tailwind for housing. Rocket is one of the largest mortgage brokers in the country.
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