Rocket Companies (RKT) Shares Surge in After-Hours Trading Following Trump’s Housing Market Promise

Rocket Companies Surges After Trump Proposes Mortgage Rate Relief

Rocket Companies Inc (NYSE: RKT) experienced a significant jump in after-hours trading on Thursday following a post by former President Donald Trump on Truth Social. Trump unveiled a comprehensive proposal designed to bring down U.S. mortgage rates.

Here’s a summary of the key points for investors.

• Rocket Companies stock is rallying decisively. What’s driving RKT’s gains today?

Trump Suggests $200 Billion Mortgage-Bond Buyback

In his statement, Trump explained that since his administration chose not to sell Fannie Mae and Freddie Mac, these government-backed entities now possess approximately $200 billion in cash reserves.

He announced plans to direct his team to purchase $200 billion worth of mortgage-backed securities. According to Trump, this initiative would help lower mortgage rates, reduce monthly payments, and make homeownership more accessible—part of a larger effort to improve housing affordability nationwide.

How Rocket Companies Benefits

Rocket’s business model is closely linked to mortgage origination volumes. When interest rates decrease, more homeowners refinance and more buyers qualify for loans, boosting application and origination activity on Rocket’s technology-driven, largely fixed-cost platform.

The entry of a major new buyer for agency mortgage bonds would likely push down yields on these securities, which in turn would lower mortgage rates. Even the possibility of such a program has sparked optimism for a rebound in loan demand and fee revenue for Rocket, encouraging investors to buy the stock in anticipation of stronger future earnings.

Benzinga Edge Rankings: Rocket currently boasts a Momentum score of 94.04 in the Benzinga Edge rankings, highlighting its robust price momentum.

Image: Shutterstock

Stock Snapshot

• Ticker: RKT
• Company: Rocket Companies Inc
• Current Price: $22.50
• Change: +5.93%