Rocket reports $709M Q3 profit despite slower mortgage originations

Rocket Companies reported a net income of $709 million for the third quarter ended September 30, reversing a loss of $124 million from the same period last year, HousingWire reported.

The Detroit-based mortgage lender's total revenue nearly doubled year over year to $3.28 billion, up from $1.7 billion, while adjusted revenue increased to $2.57 billion from $1.87 billion.

Despite a slowdown in mortgage production, with closed origination volume falling to $43.6 billion from $49.1 billion, Rocket gained market share in both purchase and refinance lending, according to HousingWire.

Adjusted net income declined slightly to $419 million from $441 million in the previous quarter, and adjusted EBITDA fell to $748 million from $766 million, reflecting the impact of higher mortgage rates and inflation expectations.

Rocket's CEO noted the company's investments in technology and distribution helped it achieve its highest profitability margin in nearly five years, even as mortgage rates rose to a three-year high.

The CFO had anticipated the Q3 slowdown during the prior earnings call, citing rates above 6.8% and rising inflation as challenges for the mortgage market.