‘Some companies are closing their doors, others are shutting down divisions’: Rocket CEO’s plans to navigate the dramatic decline in mortgages
The mortgage industry is struggling with higher rates and a sharp drop in buyer demand. Rocket RKT says it’s got a plan to turn things around.
“It can be painful … some companies are closing their doors, others are shutting down divisions of their companies. Others are doing layoffs,” Farner added. “Unfortunately, that’s part of the process — that capacity comes out.” Rates are up from 3.16% this time last year, to 6.02% in mid-September, according to a weekly survey by Freddie Mac. The massive drop in sales and the sector more broadly has led to some experts calling it a “housing recession.”
When rates went back up to 2008 levels, these non-bank lenders were stuck. Mortgage demand is down by nearly 30% from the same time last year. “The massive drop in sales and the sector more broadly has led to some experts calling it a ‘housing recession.’” Rocket’s market share is about 6.4% currently, Inside Mortgage Finance said, which is the largest among all banks and non-banks, as of the first quarter of this year.
Last Friday, Rocket announced its ‘Inflation Buster’ program, which offers to shave off one percentage point off a buyer’s mortgage for the first year of their loan.
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