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fter a series of strategic acquisitions, Rocket Companies appears to be an appealing investment. The company went public in August 2020 as the largest retail mortgage originator in the United States. Its stock surged to $43 in March 2021, then slid sharply as the Fed raised rates to curb inflation. At its lowest, the share price fell to $6, but it has since rebounded to roughly $18—about 58 % below its all‑time peak as of October 2.

    Rocket’s early success was driven by low rates and a pandemic‑era refinancing boom. When rates climbed, mortgage demand cooled, eroding operating earnings and exposing the firm’s reliance on cyclical origination. Investors grew wary, and the stock struggled to maintain momentum.

    To counteract this volatility, Rocket has pivoted from a pure originator to a full‑service platform that manages the entire home‑buying journey—from search to closing and servicing. Two key acquisitions underpin this strategy. In July, the company closed on Redfin, adding a nationwide brokerage network, a popular real‑estate search engine, and a vast pool of prospective buyers. In October, it acquired Mr. Cooper Group, the nation’s largest mortgage‑servicing platform, which brings more than $2.1 trillion in unpaid principal balances. The servicing arm delivers steady, recurring fee income and creates cross‑selling opportunities for refinancing, insurance, and personal loans, thereby dampening earnings volatility.

    The combination of Redfin’s top‑of‑funnel reach and Rocket’s origination, title, and servicing capabilities creates a one‑stop shop that captures a larger share of transaction value and reduces acquisition costs. This vertical integration boosts margins and strengthens the company’s resilience in a cyclical market.

    While Rocket remains sensitive to interest‑rate swings and housing‑market conditions, its diversified revenue streams and digital platform position it to benefit from a potential rate decline and a subsequent refinancing boom. With a growing scale, recurring income from Mr. Cooper, and an integrated ecosystem, Rocket offers a compelling value proposition for investors today.

    Courtney Carlsen holds positions in Rocket Companies. The Motley Fool holds and recommends Rocket Companies, and follows its disclosure policy.