Rocket’s second-quarter profits plunge amid market slowdown

Rocket Companies, the Detroit-based parent company of mortgage lending giant Rocket Mortgage, saw profits plunge year-over-year in the second quarter amid decades-high inflation and signals of an economic slowdown.

The company on Thursday reported net income of $60 million on revenue of $1.4 billion in the second quarter. That’s down approximately 90% and 48%, respectively, from the second quarter of 2021.

On an adjusted basis, Rocket posted a $67 million net loss on revenue of $25 billion. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, came in at a $27 million loss.

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Rocket Mortgage had a closed loan origination volume of $34.5 billion in the second quarter — down nearly 60% from the same period last year. The company’s gain on sale margin was 2.92%, up from 2.78%.

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