The mortgage giant’s core business showed strength with Rocket Mortgage generating $28.4 billion in net rate lock volume, a 13% increase compared to the same period last year. Closed loan origination volume jumped 18% to $29.1 billion. However, gain on sale margin compressed to 2.80%, down 19 basis points from the prior year.
On July 1, Rocket completed its all-stock acquisition of Redfin Corporation, with each Redfin share exchanged for 0.7926 shares of Rocket Companies Class A common stock. The deal increased Rocket’s Class A float to 12%. Founded in 2004, Redfin draws 50 million monthly active visitors and features over 1 million listings.
Krishna noted early signs of synergy between the companies: “We’re already seeing early signs of what’s possible with Rocket and Redfin together: our purchase funnel is expanding, conversion rates are rising, and Redfin clients are beginning to close with Rocket.”
The company also launched Rocket Preferred Pricing on July 1, offering clients who finance with Rocket Mortgage and use Redfin agents a one percentage point interest rate reduction for the first year or up to $6,000 in lender credits at closing.
Rocket maintained strong liquidity with $9.1 billion in total available funds, including $5.1 billion in cash. The servicing portfolio reached $609 billion in unpaid principal balance across 2.8 million loans, generating approximately $1.6 billion in annual recurring servicing fee income.