The Case-Shiller Home Price Index fell for the fourth consecutive month in October, with the month-over-month index falling 0.5%.
Mortgage banking is one of the most out-of-favor industries in the stock market at the moment. The business has always been highly cyclical, and the feasts of 2020 and 2021 are being followed by the famine of 2022, driven by the Fed's aggressive campaign to rein in high inflation. Mortgage rates rose dramatically this year, and mortgage origination volumes are a fraction of what they were a year ago.
Mortgage bankers have had a rough year as origination volumes have collapsed in the face of the Federal Reserve's tightening of monetary policy to combat inflation. Rocket (NYSE: RKT) is known primarily as a mortgage originator, but it is building a presence in other financial services, which will help compensate for the cyclicality of the mortgage business. This app is more than a convenience, however; it is a core part of the company's cost advantage.