Mortgage Rates Surge, Causing Application Volume to Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 18 2026
0mins
Should l Buy RKT?
Source: CNBC
- Mortgage Application Decline: According to the Mortgage Bankers Association, total mortgage application volume fell by 10.9% last week, primarily due to mortgage rates reaching their highest level since the end of last year, which slowed the market's refinancing demand.
- Rising Rates Impact Refinancing: The average contract interest rate for 30-year fixed-rate mortgages increased from 6.19% to 6.30%, causing a 19% week-over-week decline in refinancing applications, although they remain 69% higher than the same week last year.
- Home Purchase Loan Applications Increase: Despite the overall market slowdown, mortgage applications for home purchases saw a 1% gain and were 12% higher than the same week last year, indicating potential vitality in the upcoming spring housing market.
- Market Dynamics and Fed Influence: While most analysts do not expect the Federal Reserve to cut rates at the upcoming meeting, the market's focus on geopolitical factors may lead to volatility in rates, impacting the stability of the mortgage market.
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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: 13.670
Low
18.00
Averages
22.18
High
25.00
Current: 13.670
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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- Economic Uncertainty Impact: Concerns over job security and inflation due to economic and geopolitical uncertainties have led to mortgage rate volatility, causing buyers to hesitate and cancel transactions, further complicating the housing market dynamics.
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See More
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- Decline in Buyers: The number of homebuyers fell by 2.4% month-over-month in February to approximately 1.36 million, while the number of sellers saw a smaller decline of 0.4% to about 1.99 million, reflecting the impact of high housing prices and economic uncertainty on buyer behavior.
- Strong Southern Markets: Miami emerged as the strongest buyer's market in February, with 163% more sellers than buyers, followed closely by Austin, TX, and Nashville, TN, highlighting the robust appeal of Southern markets.
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