Business

As Interest Rates Rise, Gilbert's Rocket Companies' Profits Plunge 94% From Last Year

August 04, 2022, 5:20 PM by  Allan Lengel

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To curb inflation, the feds have been jacking up interest rates. That's not good for the mortgage business.

Dan Gilbert's Detroit-based Rocket Companies Inc. reported on Thursday a $60 million profit in the second quarter of the year, a sharp 94 percent decline from the same period a year ago.

Total revenues during the quarter went from $2.7 billion last year to $1.4 billion this past quarter.

Rocket put on a best spin possible under challenging times.

"During this time of change in the industry, we are focused on operating our business with discipline," Julie Booth, CFO and Treasurer of Rocket Companies, said in a press release. "We reduced expenses by approximately $300 million during the second quarter and will continue to execute a prudent approach to cost management."

See the press release

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