Rocket shares increased by approximately 6.3% following Krishna's announcement of promising news. The company plans to release its earnings report on February 19.
"As we prepare for our upcoming earnings call in a couple of weeks, I can disclose that we're on course to achieve the highest mortgage loan production volume that we've had in four years, along with the highest gain on sale during the same period," Krishna stated on CNBC's "Squawk Box."
Last month, the 30-year mortgage rate fell 22 basis points to 5.99%, equaling the low seen on February 2, 2023, as reported by Mortgage News Daily. This decrease followed President Donald Trump's announcement on social media instructing Fannie Mae and Freddie Mac to acquire $200 billion in mortgage bonds.
Rocket's advantage lies in its customer retention strategy, which effectively integrates mortgage servicing with origination, according to the CEO. This strategy maintains customer relationships via its servicing platform, enabling Rocket to capture borrowers returning for home purchases or cash-out refinances.
"Whenever they are ready for their next purchase or cash out refinance, Rocket offers an excellent experience, powered by AI. This capability allows us to retain clients, whereas other companies might lose these opportunities," he explained.
Krishna expressed confidence in the broader housing market forecast, citing potential mortgage market growth of up to 25% by 2026 and a possible 10% rise in existing home sales as affordability and demand improve.