While no one’s buying homes, Rocket’s buying Redfin
Mortgage biggie Rocket Cos said Monday that it’ll buy real estate listing platform Redfin for $1.75 billion in an all-stock deal.
Redfin shares surged more than 75% in early trading, while Rocket shares fell more than 10%. The companies expect the deal to close in the second or third quarter this year.
“We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent, and get pre-qualified for a loan, all in a matter of minutes,” wrote Redfin CEO Glenn Kelman in a statement about the deal.
Kelman is expected to continue leading Redfin following the deal.
While housing giants look to consolidate, housing remains bleak. Existing US home sales last year fell to 4.06 million, a near 30-year low, continuing their anemic run. The median sales price of US homes rose to $419,200 in Q4.
Elevated borrowing costs continue to weigh on the outlook for real estate activity. Though 30-year mortgage rates are down about 40 basis points off their highs of the year to 6.6%, that’s still well above the 4% rate on US mortgage debt outstanding as of the end of 2024.
“We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent, and get pre-qualified for a loan, all in a matter of minutes,” wrote Redfin CEO Glenn Kelman in a statement about the deal.
Kelman is expected to continue leading Redfin following the deal.
While housing giants look to consolidate, housing remains bleak. Existing US home sales last year fell to 4.06 million, a near 30-year low, continuing their anemic run. The median sales price of US homes rose to $419,200 in Q4.
Elevated borrowing costs continue to weigh on the outlook for real estate activity. Though 30-year mortgage rates are down about 40 basis points off their highs of the year to 6.6%, that’s still well above the 4% rate on US mortgage debt outstanding as of the end of 2024.
