Chart of the Week: Here is Who Wins When Mortgage Rates are Falling:

Christian DeHaemer

Posted January 20, 2024

Mortgage rates may have peaked.  The Federal Reserve could start cutting rates as soon as March.  Ally Financial (ALLY), an auto lender, was up 10% on Friday after beating its earnings estimates and announcing a sale of its point-of-sale business for $2.2 billion.  If rates continue to drop it will be good for lenders.  Just be careful to stay away from any banks with large commercial real estate loans.

My bet on falling rates is Rocket Companies (RKT) which was up 5% today in sympathy.  Full disclosure: I own RKT.

All the best,

Christian DeHaemer for ProTrader Today