NEW YORK, Jan 30, 2026, 19:55 ET — After-hours
- Rocket Companies (RKT) dropped 13.7% to $17.93 on Friday, as trading turned heavy and volatile.
- Shares in mortgage lenders dipped following a disappointing report from PennyMac Financial Services, raising concerns about margins.
- Attention next week shifts to rates, mortgage figures, and the U.S. jobs report for Feb. 6.
Rocket Companies shares dropped 13.7% Friday, closing at $17.93, with minimal movement in after-hours trading. Volume topped 87 million shares, roughly triple the 50-day average, as the stock swung between $17.85 and $20.73.
The mortgage lender has turned into a fast track for trading U.S. rate bets. When borrowing costs shift, refinancing demand—swapping out an old home loan for a new one—can spike or vanish, and lenders’ margins often take a hit as competition intensifies.
Markets jittered after President Donald Trump announced Kevin Warsh, ex-Fed governor, as his choice to lead the central bank. Warsh is set to replace Jerome Powell when his term expires in May, subject to Senate approval. “You’ve got uncertainty,” noted Terry Sandven, chief equity strategist at U.S. Bank Asset Management, as the 10-year Treasury yield crept toward 4.25%. (Reuters)
Mortgage lenders took a sharp hit after PennyMac plunged 33%, missing its quarterly profit targets, according to Bloomberg. The weakness spread across the sector. The report pointed to tighter mortgage origination spreads—the margin on new loans—as the key factor behind PennyMac’s underperformance, which in turn dragged down its peers. (Bloomberg)
PennyMac reported fourth-quarter net income of $106.8 million, or $1.97 per diluted share. CEO David Spector noted that “increased runoff on our MSR asset” weighed on results despite strong loan production; mortgage servicing rights represent the contractual right to collect payments for a fee. (Business Wire)
Rocket’s decline matched the trend across the sector. UWM Holdings tumbled 13.9%, while mortgage insurers MGIC Investment and Radian Group each edged down by under 1%, according to MarketWatch data. (MarketWatch)
Investors are keeping an eye on whether lower mortgage rates might trigger a refinancing surge without slashing prices. Freddie Mac reported the average 30-year fixed rate edged up to 6.10% in its most recent weekly survey. (Freddie Mac)
Rocket, which sells and services home loans, faces a tricky balance: lower rates may boost volume, yet quicker payoffs cut into servicing income and push up hedging expenses. After Friday’s selloff, investors are weighing how much of the “rates down” story is already baked into the stock.
The setup could reverse once more. Rising yields might push mortgage rates higher, squeezing demand; a sharp drop in rates, on the other hand, could force lenders to slash prices and see servicing portfolios shrink.
Trading picks back up Monday, but the real spotlight will be on the U.S. labor data. The Bureau of Labor Statistics plans to release the January Employment Situation report on Feb. 6 at 8:30 a.m. ET. That report could shake up forecasts for Fed moves and mortgage rates. (Bls)
