Rocket Companies (NYSE:RKT) stock is surging on Wednesday, following the release of positive U.S. housing data and an increase in mortgage refinancing activity.
According to a Tuesday report from the Redfin Home Price Index (RHPI)—published by Rocket Companies’ subsidiary, Redfin—U.S. home prices increased 0.3% month over month in May on a seasonally adjusted basis. This represents the fastest growth rate since January. Prices rose 2.5% on a year-over-year basis, marking the fastest annual growth in six months.
Mortgage Applications Show Weekly Gains
Data released on Wednesday by the Mortgage Bankers Association (MBA) showed that mortgage applications increased 1% from one week earlier for the week ending June 19. The MBA Refinance Index increased 3% from the previous week and stood 17% higher than the same week one year ago. The refinance share of mortgage activity expanded to 41.5% of total applications, up from 40.3% the prior week.
“Purchase application volume edged slightly lower, while refinance activity posted modest gains,” stated Mike Fratantoni, MBA’s SVP and Chief Economist. “Despite the elevated mortgage rates and overall economic uncertainty, mortgage application volume is running 8 percent above year-ago levels.”
Easing Loan Rates Assist Demand
A separate Primary Mortgage Market Survey by Freddie Mac as of June 18, showed the 30-year fixed-rate mortgage decreased to an average of 6.47%, down from 6.52% the prior week. Freddie Mac noted that incoming data reflects a resilient consumer, with improving retail sales and strengthening pending home sales suggesting that purchase demand continues to modestly improve.
Technical Analysis
RKT is now trading above its 20-day SMA ($13.61) and 50-day SMA ($14.28), which often shifts the near-term conversation from sell rallies to buy dips as long as those averages start acting like support. At the same time, the stock is still trading 11.7% below its 200-day SMA ($17.17), so the longer-term trend picture hasn’t fully repaired yet.
The bigger backdrop is still a bit heavy: the 20-day SMA remains below the 50-day SMA, and the 50-day SMA is below the 200-day SMA (the death cross that occurred in March).
- Key Resistance: $15.50 — a nearby pivot area where rebounds can stall, sitting just above the current price and near the 100-day SMA ($15.30)
- Key Support: $13.50 — a nearby demand zone that lines up closely with the 20-day SMA/EMA area ($13.61/$13.73)
RKT Stock Price Activity: Rocket Companies shares were up 11.77% at $15.05 at the time of publication on Wednesday, according to Benzinga Pro data.
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