New York, January 11, 2026, 06:01 (EST) — The market has closed.
Shares of Rocket Companies (RKT) surged 9.6% on Friday, closing at $23.29, as mortgage stocks rallied following President Donald Trump’s directive for a $200 billion mortgage bond purchase program. loanDepot jumped 24%, UWM Holdings added 11.6%, and housing platform Opendoor Technologies climbed nearly 19%. Brian Jacobsen, chief economic strategist at Annex Wealth Management, noted, “Every little bit will help push mortgage yields lower.” (Reuters)
Rocket thrives on headlines like that. Even a slight tweak in rate forecasts can flip the refinancing equation, and these stocks usually catch the shift early.
U.S. markets reopen Monday as investors weigh if Friday’s jump was just a one-day squeeze or the beginning of a rate-driven rally. For Rocket, the coming days hinge on whether mortgage rates drop in step with bond yields — or hold steady.
Trump announced on Truth Social that he’s directing his team to purchase $200 billion in mortgage bonds, aiming to push down mortgage rates and lower monthly payments. Bill Pulte, head of the Federal Housing Finance Agency, said Fannie Mae and Freddie Mac will handle the buys but declined to share details with Reuters, saying, “We’re not disclosing what we are going to be doing, but we’re very serious about executing on it.” Chen Zhao, Redfin’s chief economist, called the $200 billion figure a “fairly small impact,” estimating it might shave just 10 to 15 basis points off borrowing costs. Mortgage-backed securities are bonds secured by pools of home loans. (Reuters)
The order also brought renewed focus on the future of Fannie and Freddie, still under government control since their 2008 bailout. TD Cowen analyst Jaret Seiberg noted, “This does not sound like a President who is in a rush to IPO the enterprises.” Meanwhile, JonesTrading’s Mike O’Rourke warned that if these government-sponsored entities become a “funding arm” for policy, investors shouldn’t count on their re-privatization. (Reuters)
Rocket’s stock isn’t driven by IPO chatter, but it does rely on trading volume. Its earnings fluctuate with mortgage originations, which tend to rise once borrowers believe rates have hit their high point.
The risk lies in the policy push failing to bring down borrowing costs, or doing so too gradually. Traders also fear that any boost in affordability might be fleeting if rising demand pushes home prices up amid tight supply.
Mortgage lenders have shown a pattern of sharp rallies followed by quick reversals, and Rocket fits right in. A botched rollout or a spike in Treasury yields can wipe out a week’s gains in a single session.
Tuesday brings the U.S. consumer price index report for December, set for release at 8:30 a.m. ET. If inflation surprises on the upside, yields could spike, challenging Friday’s wager that mortgage rates will drop. (Bls)
