Rocket Companies, Inc. (NYSE:RKT) shares are trading higher Friday after President Donald Trump said he is instructing representatives to buy $200 billion in mortgage bonds.
Rocket Companies stock is challenging resistance. Why did RKT hit a new high?
What To Know: In a Truth Social post, Trump said the government-sponsored enterprises Fannie Mae and Freddie Mac currently hold approximately $200 billion in cash. He said he plans to direct that capital toward purchasing mortgage bonds as part of a broader effort to lower U.S. mortgage rates.
Trump said the proposed purchases would push mortgage rates lower, reduce monthly mortgage payments, and make homeownership more affordable. He framed the move as part of a larger initiative to restore affordability in the U.S. housing market.
Rocket Companies shares appear to be moving higher as investors react to the potential impact of lower mortgage rates on mortgage-related activity. Rocket's business is closely tied to mortgage origination and refinancing volumes, which tend to increase when borrowing costs decline. The prospect of a large-scale mortgage bond purchase raised expectations for improved loan demand, prompting traders to bid the stock higher.
RKT Price Action: At the time of writing, Rocket shares are trading 5.37% higher at $22.35, according to data from Benzinga Pro.
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