Rocket hit with class-action over borrower steering

🐪 Happy Wednesday. Today's newsletter is 605 words — a 2.5-minute read.

1. Weekly mortgage applications dip 8.5%

Mortgage interest rates rose last week for the first time in a month. That pushed total mortgage demand down 8.5% compared with the previous week, according to the MBA.

Applications to refinance a home loan dropped 16% for the week. Applications for a mortgage to purchase a home were essentially flat, down 0.4% from one week earlier. The average interest rate for 30-year FRM increased to 6.24% from 6.16%.

“With rates holding in the 6 percent range, the refinance market is likely to remain sensitive to week-to-week rate movements” said Joel Kan, MBA’s vice president and deputy chief economist in a release.

2. Rocket hit with class-action over borrower steering

A group of homebuyers filed a class-action lawsuit against Rocket Companies and affiliated units, alleging the lender illegally steered borrowers into higher-cost mortgages through its real estate referral network.

Filed Jan. 26 in federal court in Michigan, the suit claims Rocket Mortgage, Rocket Homes, and Amrock pressured real estate agents to funnel clients to Rocket loans in exchange for access to leads, even when cheaper financing options were available.

Plaintiffs allege the practices violated the Real Estate Settlement Procedures Act, limited consumer choice, and inflated housing costs. Rocket denies the allegations, calling them a rehash of a previously dismissed CFPB case.

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3. More Nuggets

⚖️ Court sides with Platinum One Lending, dismisses NEXA claims over $350K dispute. (NMP)

⏸️ Federal Reserve is on track to keep interest rates steady. (The Hill)

📊 Metros with the highest home purchase cancellation rates. (Redfin)

📰 Investor calls CoStar's residential project a 'fiasco,' slams Homes’com spending. (AFR)

4. Which states are gaining—and losing—Americans

U.S. domestic migration in 2025 continued to favor Southern and Sun Belt states, according to Census Bureau data. This data reflects net domestic migration only, excluding births, deaths, and international migration.

Between July 2024 and July 2025, North Carolina led all states in net domestic inflows (+84,064), followed by Texas (+67,299), South Carolina (+66,622), Tennessee (+42,389), and Arizona (+31,107).

California posted the largest net outflow (−229,077), with sizable losses also in New York (−137,586), Illinois (−40,017), New Jersey (−37,428), and Massachusetts (−33,340).

5. Consumer confidence falls to lowest level in more than a decade

The Consumer Confidence Index fell in January to 84.5, its lowest level in more than a decade, reflecting Americans’ persistent concerns about the U.S. economy.

• The index — which measures how Americans feel about current and future economic conditions — fell 9.7 points this month from the upwardly revised 94.2 recorded in December.

Fewer Americans expect their incomes to rise in the coming months, prompting consumers to cut back on vacation plans and approach big-ticket purchases more cautiously.

☀️ You’re all caught up. See you on Friday!

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