The Mortgage Market Gets Its Groove Back

Mortgage Market - The average qualifying mortgage rate has decreased to 6.49%, down approximately 20 basis points, leading to a significant increase in refinancing and new loan demand [1][2] - Refinancing activity surged by 34% compared to the same week last year and increased by 12% week over week, while new loans rose by 23% year-over-year and 7% from the previous week [2] - The increase in refinancing is primarily driven by lower mortgage rates, with many homeowners previously having rates above 7% [2] Oracle's Financial Performance - Oracle's market capitalization increased by $250 billion following a strong fiscal first quarter 2026 earnings report, marking its best day since 1992 [10][11] - The remaining performance obligations (backlog) surged by 359% to $455 billion, indicating significant future revenue potential [10] - Despite the impressive backlog growth, GAAP earnings per share were down year-over-year, suggesting that increased spending on infrastructure may delay profit growth [11][12] Investment Opportunities - Rocket Companies (RKT) is highlighted as a key stock to watch due to its acquisition of Redfin and its potential to benefit from a more active real estate market [5] - Upstart (UPST) is also noted for its significant growth in loan originations, which increased by 800% year-over-year in the second quarter of 2025, indicating a recovery in the housing market [6][7] - Seagate Technology (STX) is mentioned as a potential investment due to its essential role in data center infrastructure, especially in light of Oracle's backlog growth [13] - Advanced Micro Devices (AMD) is recognized for its growth opportunities in AI and data center chips, benefiting from the positive sentiment surrounding Oracle's performance [13]