Rocket Companies Inc (NYSE:RKT) entered a pact with the Realtor site. The investors welcomed the deal and lifted its shares.
With this accord, Rocket’s preapproved mortgages will be listed on the Realtor site, and it allows connecting with home buyers directly. The shares of Rocket are bumpy after the IPO in August. However, the investors are bullish on Rocket after it entered a deal with Realtor.
Leans into the strong housing market
Quicken Loans, a Rocket subsidiary, is establishing its footprint in the strong housing market in 2020. It reported revenues of over $5 billion in Q2 2020 and realized profits of $3.5 billion. The loan origination volume increased 126% YoY to $72.3 billion in Q2 2020.
Interest rate cuts promote the housing market
The interest cut by the Federal Reserve to 0% in March 2020 for stimulating the economy is a boon for the housing market. According to a communiqué from the NAR (National Association of Realtors), the pending home sales posted a monthly increase of 8.8% in August 2020.
Rocket, Jay Farner, said its deal with Realtor helps home buyers find their dwellings with ease and receive a verified and approved loan. The agents of home buyers can receive vital data either night or day and complete the deal quickly.
Commenting on the earnings in Q2 2020, Farner said the companies reported better performance in the quarter because of strong efforts put in by the teams and scalable MOP (Mortgage Origination Platform) to satisfy the growing demand. During the difficult times of ongoing coronavirus, around 98% of its teams performed their tasks from homes. The company expects to post better earnings in the future because of its strategy to invest in long term growth. It yearns to achieve a market share of 25% by the year 2030 by focusing on digital and client-oriented approaches.
Services of Rocket
Detroit based holding company, Rocket engages in offering financial, mortgage, and real estate services. It empowers the clients through entities such as Rocket Mortgage, Rocket Auto, and Rocket Homes. The company helped several clients achieve financial freedom and realize the dream of owning a house since 1985.