The Fed just slashed interest rates, and the market is going wild for homebuilder stocks. Toll Brothers, KB Homes, Lennar – they're all up double-digits this year as folks anticipate a rush of new homebuyers. But that’s old news, friend. Savvy investors are already looking past the homebuilders to the REAL housing winner: the mortgage lenders.
Here's the deal: for the last two years, sky-high mortgage rates meant that existing homeowners were stuck. Why trade a 3% mortgage for one at 7%? It crippled the market. Existing homeowners weren't selling, forcing prices up as builders scrambled to meet demand.
But now the tides are turning… big time!
As my good friend and fellow market guru Chris Johnson pointed out in his recent analysis, “With rates heading lower, we’re already seeing the number of existing homes on the market increase. Owners are looking to cash in on high prices now that it makes more sense to buy another home with lower rates on the horizon.”
He's absolutely right! That means a wave of new mortgages is coming as buyers and sellers rush back into the market. And Johnson has already identified the perfect stock to ride this wave: Rocket Companies (RKT).
Rocket Companies (RKT): Set to Blast Off
Rocket Companies is the undisputed KING of American mortgages. As Chris noted, “Rocket Mortgage – one of the Rocket Companies (RKT) is the largest mortgage lender in the United States, originating 464,363 mortgages worth $127.6 billion in 2022.”
Those are monster numbers! They have the scale, the technology, and the experience to dominate as the market comes back to life. And here's the best part: Wall Street is sleeping on this opportunity!
Chris pointed out that, “Current analyst recommendations for Rocket Companies show that zero “0” analyst rate the stock a buy while 15 consider the stock a “hold” or “sell”. They're totally missing the boat – and that's great news for us.
RKT is undervalued, underappreciated, and ready to take off. It's a classic contrarian buying opportunity that could hand you double-digit profits in the months to come.
I'm loading up on RKT, and I suggest you do the same. This is the kind of stock that can help you build REAL wealth as the housing market comes roaring back. Don't get caught chasing the homebuilders when the TRUE profits are right here in front of you.
