The housing market began positively with improved inventory and lower mortgage rates, but recent shifts show increasing concerns. Chief Analyst Varun Krishna noted that while housing inventory reached four months and mortgage rates dropped to 6.6%, a significant number of consumers are canceling major purchases. Despite Rocket Companies' $21.5 billion in mortgage originations in the first quarter of 2025, they reported a GAAP net loss of $212 million, emphasizing mixed indicators in the market as purchase applications plunged, reflecting trends reminiscent of the Great Recession.
Housing inventory improved, reaching four months of supply, and the 30-year fixed mortgage rate declined from 7% in January to 6.6% in March.
Despite a positive start to the year, Rocket faced challenges with falling purchase applications similar to those seen during the Great Recession.
Rocket originated $21.5 billion in mortgages in Q1, showing some growth year-over-year but down from Q4 2024, reflecting mixed market conditions.
Rocket reported a GAAP net loss of $212 million for Q1, contrasting sharply with a profit from the same period last year.
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