What Happened?
Shares of fintech mortgage provider Rocket Companies (NYSE:RKT) jumped 3.6% in the morning session after the company reported a notable increase in starter home sales for the month of June, signaling strength among first-time homebuyers. The company announced through its real estate brokerage, Redfin, that sales in this segment rose 3.9% year-over-year, reaching their highest level in two years. This report marked a bright spot in an otherwise sluggish housing market, where sales in other price tiers actually declined. The data indicated ten consecutive months of growth in starter home sales, driven by an influx of first-time homebuyers. This performance suggested a pocket of strength for Rocket Companies, showing resilience in a key demographic despite broader market weakness.
After the initial pop the shares cooled down to $15.16, up 0.9% from previous close.
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What Is The Market Telling Us
Rocket Companies’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Rocket Companies is up 39.7% since the beginning of the year, but at $15.16 per share, it is still trading 27.2% below its 52-week high of $20.81 from August 2024. Investors who bought $1,000 worth of Rocket Companies’s shares 5 years ago would now be looking at an investment worth $704.74.
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