New York, Jan 12, 2026, 13:19 ET — Regular session
- Rocket Companies (RKT) slid roughly 1.6% in early afternoon trading
- JPMorgan has resumed coverage, assigning a Neutral rating and setting a $24 price target
- Rate-sensitive mortgage stocks are eyeing Tuesday’s U.S. inflation report
Rocket Companies, Inc. shares fell roughly 1.6% to $22.91 in early Monday trading after JPMorgan brought back coverage, assigning a Neutral rating and a $24 price target. The stock hit $23.49 earlier, with volume around 18 million shares. (Investing)
This matters since Rocket’s business hinges on mortgage demand, which can shift fast with interest rates. When rates drop, refinancing often picks up as homeowners swap out old loans. But when rates climb, both refinancing and home purchases typically slow down.
Monday’s brokerage call comes as traders juggle inflation data and bond yields. For Rocket, tiny changes in mortgage pricing can swing origination volumes and the profit margins on new loans.
JPMorgan analyst Richard Shane noted that Rocket’s purchases of Redfin and Mr. Cooper bring “important new revenue streams” to its origination platform. Still, he cautioned that investors might have already priced in a scenario with lower rates and market share growth that goes beyond the immediate impact of those acquisitions. (TipRanks)
Rocket has been pushing to expand beyond just mortgage lending, folding Redfin’s real estate platform and brokerage into its operations and bringing loan servicer Mr. Cooper onboard to boost recurring servicing revenue. (Rocket Companies Investor Relations)
Other mortgage-linked stocks showed mixed moves. UWM Holdings gained roughly 0.3%, PennyMac Financial edged up near 0.1%, but LoanDepot slid around 3.4%.
Beyond the sector, markets were rattled by new political pressure on U.S. monetary policy after prosecutors launched a criminal probe into Federal Reserve Chair Jerome Powell. The news shook currencies and safe-haven assets alike. Benchmark U.S. yields stayed near 4.2%. (Reuters)
Mortgage rates held steady near 6% on Monday, with a daily survey showing the 30-year conventional rate at about 6.14%, barely moving from last week. Although this marks a dip from last month’s figure, it still keeps affordability under pressure. (Fortune)
On the flip side, if inflation jumps unexpectedly and drives yields up, the easing in rates might stall. That could dampen refinancing activity, disappointing equity investors. Plus, a cooling housing market would weigh on purchase loan volumes as well.
The next big hurdle arrives quickly: December’s U.S. CPI data drops at 8:30 a.m. ET Tuesday. For Rocket’s stock, this report might outweigh any individual rating shift, since it could instantly reset rate expectations. (Bls)
