Why Things Could Be Looking Up for Rocket Companies' Stock
Mortgage banking is one of the most out-of-favor industries in the stock market at the moment. The business has always been highly cyclical, and the feasts of 2020 and 2021 are being followed by the famine of 2022, driven by the Fed's aggressive campaign to rein in high inflation. Mortgage rates rose dramatically this year, and mortgage origination volumes are a fraction of what they were a year ago.
That said, mortgage rates began to fall again over the past couple of months and if you believe the Mortgage Bankers Association, they will fall even further next year. Could things be turning around for the mortgage business and Rocket Companies (NYSE: RKT)?
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Source Fool.com
