Rocket Companies Sees Market-Share Gains as Redfin, Mr. Cooper Synergies Build

Rocket Companies is targeting mortgage market-share gains despite elevated rates, with recent shares reaching 6.2% in purchase mortgages and 14.3% in refinances. Its long-term goals are 8% and 20%, respectively. Rocket says its business is better positioned for higher rates, with about 70% of revenue coming from less rate-sensitive products such as purchase lending, servicing, Rocket Money, Rocket Loans and home-equity products. Integration of Redfin and Mr. Cooper is generating benefits: Rocket has reached the $400 million annual Mr. Cooper expense-synergy target ahead of schedule, sees an additional $100 million in potential savings, and is using combined customer data to improve cross-selling and servicing recapture.

Rocket Companies NYSE: RKT President and Chief Financial Officer Brian Brown said the company sees opportunities to gain mortgage market share despite pressure from elevated interest rates, citing its diversified revenue base, national distribution network and recently integrated businesses. Speaking at an investor conference, Brown said inflation and a rising 10-year Treasury yield have continued to pressure mortgage rates. Still, he said purchase mortgage activity could remain near 2025 levels, referencing a Fannie Mae forecast that reduced its purchase-market assumptions but kept projected volumes relatively close to the prior year.

“While there is a lot of pressure,” Brown said, “I think there is still a lot to be excited about and a lot of opportunity ahead of us.” Housing Market Conditions Vary by Region Brown said national housing statistics can obscure meaningful differences among local markets. While some markets remain highly competitive for buyers, he said inventory has begun to rise in several areas, including Nashville, San Jose and Seattle.

Rocket’s operations across all 50 states and 3,000 counties give it visibility into those local conditions, Brown said. The company uses a combination of brokers, local loan officers and centralized loan officers to serve different markets. He also pointed to record home-equity levels as an opportunity, particularly for second-lien and home-equity lending. Brown said Rocket is the largest home-equity lender when both second mortgages and revolving home-equity lines are included, though he noted the company itself focuses on second liens and second mortgages. Cash-out refinances can also remain relevant for consumers seeking to access home equity, depending on the size of the loan and the amount of cash needed, he said.

Balanced Model Designed for Higher Rates Brown said Rocket has sought to create a business that can operate through both high- and low-rate environments. While lower rates could spur rate-and-term refinancing activity, he said the company’s acquisitions and investments were made with the expectation that rates could remain elevated for longer. According to Brown, about 70% of Rocket’s revenue now comes from less rate-sensitive products and services, including purchase transactions, Rocket Money, servicing, Rocket Loans and home-equity-related products. He said the remaining 30% is tied more directly to rate-and-term refinancing and interest-sensitive servicing-related activities. That compares with Rocket’s prior business mix, when Brown said rate-and-term refinancing represented roughly 70% of revenue. The current revenue composition provides more recurring cash flows in a higher-rate environment, he said.