‘I'm very optimistic’: Rocket Companies CEO says the housing market will return to ‘normal’ in 2023

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Mortgage rates are falling. Will that be enough for the housing market to recover? Rocket Companies' CEO Jay Farner believes so.

As mortgage rates fall, housing-market players say they felt a sense of relief wash over them. One CEO says he’s upbeat about the rest of the year.

“I’m very optimistic about housing this year,” Jay Farner, CEO of Rocket Companies RKT , told MarketWatch in a recent episode of Barron’s Live. “It’s going to be a strong market.” But Farner said his upbeat outlook is based on the market establishing more balance in 2023. “It feels like a more normal market that we’re entering into in 2023,” he said.“We expect more homebuyers and sellers to gradually return to the market by springtime,” Chen Zhao, economics research lead at Redfin, said in a that report. “But mixed economic news and mixed reactions from the market mean the recovery will be uneven.

“We won’t be in the 5 million-plus units sold range …things have changed,” Farner said. “We’re certainly not in the heart of the pandemic, like we were a few years ago that was driving the desire for homeownership and second homes, but it’s still a strong housing market.” People have questions about what job security looks like, and whether there be a fall in wages in some industries, Farner said. “And so when you have that uncertainty, sometimes that can cause buyers to remain on the sidelines,” he added.

 

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Why are mortgage rates falling, and can that in and of itself restore normalcy to the housing market?

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