Rocket Cos. reported second-quarter earnings that beat expectations even as the housing market remains stagnated by higher mortgages rates.
(Bloomberg) — Rocket Cos. reported second-quarter earnings that beat expectations even as the housing market remains stagnated by higher mortgages rates.
Rocket, one of the biggest US providers of mortgages, posted adjusted revenue of about $1 billion for the period, less than the same quarter a year ago but better than analysts predicted. The company’s closed-loan origination volume hit $22.33 billion, also topping forecasts.
The Detroit-based company recently hired former Intuit Inc. executive Varun Krishna to become chief executive officer on Sept. 5, taking over from interim CEO Bill Emerson who’ll become president and chief operating officer.
“Against the backdrop of housing affordability and inventory challenges, we reported adjusted revenue that exceeded the high end of our guidance range,” Emerson said in a statement. “These results are reflective of our continued focus on operating a growing and efficient business.”
Rocket shares were up about 1.8% in late New York trading.
Mortgage rates in the US have increased in lockstep with the US Federal Reserve’s rate hikes, resulting in little appetite for new borrowing. Despite the quiet housing market, the company said it expects third-quarter adjusted net revenue to be between $850 million and $1 billion.
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