Initially, circumstances for mortgage lending giant Rocket Companies Inc (NYSE:RKT) did not look appealing, with RKT stock making its public market debut at the peak of the post-pandemic housing euphoria. Fundamentally, that left virtually no realistic margin for sustained growth, subsequently cratering the equity. However, with positive undercurrents materializing in the real estate market — along with a compelling quantitative signal — RKT is on the rise.
Much of the enthusiasm for RKT stock appears to be tied to the Federal Reserve's dovish pivot in monetary policy. In September, the central bank cut the benchmark interest rate to a range between 4% to 4.25%. Just recently, policymakers announced that the rate will be lowered again to a range between 3.75% to 4%.
