Barclays Upgrades Rocket and First American on Mortgage Volume Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 06 2026
0mins
Source: seekingalpha
- Mortgage Volume Growth Expectation: Analyst Terry Ma noted that despite a 40 bps increase in the 30Y fixed mortgage rate to 6.38% since February's trough, the rate is only 23 bps higher than at the start of the year, leading to an expected overall mortgage volume increase of approximately 8.9% year-over-year, indicating potential market recovery.
- Rating Upgrade: Barclays upgraded Rocket Companies and First American Financial from Equal Weight to Overweight, reflecting confidence in both companies' performance in the mortgage market, particularly their stability throughout the interest rate cycle.
- Rocket's Balanced Business: Following the COOP merger, Rocket has achieved a more balanced business mix, including around $5 billion in servicing revenues, which should enable the company to generate more stable operating results through the interest rate cycle, with analysts believing the market has undervalued this aspect.
- First American Valuation: Analysts view First American's valuation as overly discounted, similar to Rocket, suggesting that investors may miss out on potential rebound opportunities in the current market environment.
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Analyst Views on RKT
Wall Street analysts forecast RKT stock price to rise
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 15.500
Low
18.00
Averages
22.18
High
25.00
Current: 15.500
Low
18.00
Averages
22.18
High
25.00
About RKT
Rocket Companies, Inc. is a fintech platform including mortgage, real estate and personal finance businesses: Rocket Mortgage, Redfin, Mr. Cooper, Rocket Homes, Rocket Close, Rocket Money, and Rocket Loans. The Company's full suite of products empowers its clients across financial wellness, personal loans, home search, mortgage finance, title and closing. Through these businesses, it delivers client solutions leveraging its Rocket platform. It operates in two segments: Direct to Consumer and Partner Network. In the Direct to Consumer segment, clients have the ability to interact with Rocket Mortgage digitally and/or with the Company's mortgage bankers. It provides client service and leverages its brand to strengthen its wholesale relationships, through Rocket Pro, as well as enterprise partnerships, both driving growth in its Partner Network segment. The Company's capabilities span the entirety of homeownership, such as home search, financing, title, closing and servicing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Slight Drop in Fixed-Rate Loan Rates: The average contract interest rate for 30-year fixed-rate mortgages decreased from 6.57% to 6.51%, yet this minor reduction has not sufficiently stimulated buyer demand in the current market.
- Year-over-Year Purchase Loan Applications Down: While mortgage applications for home purchases rose 1% week-over-week, they were 7% lower than the same week last year, marking the first year-over-year decline since January 2025, reflecting market weakness.
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