Rocket Companies (RKT) Stock Jumps After Hours On Trump Housing Market Pledge

Core Viewpoint - Rocket Companies Inc's stock surged in after-hours trading following former President Donald Trump's announcement of a plan to lower U.S. mortgage rates, which is expected to positively impact the company's business model tied to mortgage volumes [1]. Group 1: Trump's Mortgage Plan - Trump proposed a $200 billion purchase of mortgage bonds, leveraging the cash held by Fannie Mae and Freddie Mac, to lower mortgage rates and make homeownership more affordable [2]. - The initiative aims to restore housing affordability and is part of a broader strategy to enhance the housing market [2]. Group 2: Impact on Rocket Companies - Rocket's business is closely linked to mortgage volumes; lower rates typically lead to increased refinancing and loan qualifications, boosting application and origination activities [3]. - The anticipated bond purchases could lead to lower mortgage-bond yields and rates, potentially increasing loan demand and fee income for Rocket after a period of weakness due to high rates [4]. - The stock's momentum is reflected in its high score of 94.04 in Benzinga Edge rankings, indicating strong price performance [4].