Cramer pours cold water on Rocket Companies before earnings
On the Friday, Sept. 18, episode of “Mad Money,” a caller asked Jim Cramer what to do with shares of Rocket Companies (RKT). His answer was that he can’t recommend it. Two days after, Rocket’s stock closed the week down 5.82% and 38.18% year to date.
The Federal Reserve had raised interest rates for the first time since 2023 on Sept. 16, 2026, and officials signaled they were not finished. Cramer has been telling viewers all month that the bond market is now setting the tone for stocks.
Rocket, a company whose business rises and falls with mortgage demand, is affected more directly than most.
With Rocket’s next quarterly report expected in late October, Cramer’s comments could determine how retail investors treat the stock in the weeks ahead.
Cramer’s Lightning Round verdict on the Detroit mortgage lender
During Sept. 18’s Lightning Round, Cramer made a decision on Rocket Companies. “A rate hike is the worst thing for these guys,” he told a caller, CNBC reported.
“I cannot recommend it,” he said. His comments focused more on the Fed rate increase and didn’t reference anything wrong with Rocket itself.
In March, Cramer told “Mad Money” viewers that Rocket looked valuable at around $14 and was “a vote on whether there’s going to be a rate cut,” according to Insider Monkey.
By May 15, he had turned negative, arguing that oil prices and inflation would block the rate cuts the stock needed, CNBC noted. Rocket shares now trade at $12.29, well below the level Cramer flagged in the spring.
Cramer has hosted “Mad Money” for two decades and spent years running the hedge fund Cramer Berkowitz before that, so his views on interest rates tend to catch the attention of retail traders.
How the Fed’s rate hike changed the setup for Rocket stock
On Sept. 16, the Federal Reserve lifted its benchmark rate by a quarter percentage point to a range of 3.75% to 4%, its first hike since 2023.
The move was unanimous, and Fed Chairman Kevin Warsh said the central bank has “work to do” on inflation. The Fed’s own rate projections pointed to at least one more increase this year.
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Rocket earns money by issuing and administering home loans, so demand rises when mortgage rates fall and reduces when they climb. The 30-year fixed mortgage rate reached 6.76% as of Sept. 10, up from 6.35% a year earlier.
With the 10-year Treasury yield above 5%, its highest level since 2007, mortgage costs are unlikely to fall soon.
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“Every hike from here on will be something that will knock down stocks,” Cramer told “Mad Money” viewers. Mortgage-focused companies like Rocket feel those hikes more directly than other companies.
Rocket’s strong quarter still runs into the same problem
Rocket has actually posted strong operational numbers this year. In the second quarter of 2026, the company delivered adjusted revenue of $2.76 billion and adjusted EBITDA of $766 million with a 28% margin, according to Rocket‘s investor relations release.
Purchase market share climbed to a record 6.2%, and refinance share reached 14.3%.
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Chief Executive Varun Krishna said the company delivered its “most profitable quarter in four years” on the Aug. 6 earnings call, adding that more than 70% of Rocket’s revenue now comes from recurring or less rate-sensitive businesses.
Servicing, personal loans, and the Redfin real estate platform give the company income streams that are not fully tied to the number of new home loans it originates.
Even so, the market has largely ignored the improvement. Rocket shares are down 38.18% year to date. Cramer’s warning highlights a hard reality: Even as Rocket wins market share and grows margins, the broader mortgage market keeps shrinking as rates rise.
That is the pressure he was pointing to on Sept. 18.
What Rocket investors should watch heading into the next earnings report
Rocket’s next earnings report is projected for Oct. 29. The company’s management has guided for third-quarter adjusted revenue between $2.5 billion and $2.7 billion, a step down from the second quarter, reflecting what it called a smaller mortgage market.
For shareholders, a few things stand out. The first is the mix of revenue that does not depend on new loans. If servicing income, Redfin traffic, and personal loans continue to grow, that would support Krishna’s argument that Rocket is less exposed to rate shocks than it was a few years ago.
Another thing to watch is what Rocket’s management says about mortgage rates. If Krishna repeats his August warning about a 6.8% 30-year mortgage rate and declining purchase activity, near-term guidance could get cut again.
For anyone considering Rocket now, the stock’s performance depends on whether rates peak soon or keep climbing into 2027. Keeping your investments small enough to handle that risk is a reasonable strategy.
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This story was originally published by TheStreet on Sep 22, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
