A key factor for some banks appeared to be a sharp decline in provisioning for credit losses.

In July, Rocket “restructured” general and administrative teams that supported the firm’s mortgage lending, citing investments in technology.

"The work on this has picked up significantly in recent weeks," according to Bob Broeksmit, president and CEO of the MBA.

“[The combined operations of Rocket and Mr. Cooper] allows us to be opportunistic and stick to really high expected return thresholds, that, if we can meet them, we’ll be active and we’ll bid at those levels and if we can’t, we don’t have to,” said Brian Brown, chief financial officer and treasurer at Rocket.

The MBA projects that the average interest rate for a 30-year fixed-rate mortgage will decline from 6.8% in the second quarter of 2025 to 6.6% in the second quarter of 2026.

Higher provisions for losses in the second quarter contributed to a 14.6% sequential drop in net income for the mortgage giant.

Constructive has 165 employees and originated $840 million of loans in the first half of 2025.

“As we take the next steps to quickly and responsibly implement a VA partial claim program, we expect servicers to continue to offer Veterans a full array of loss mitigation options,” VA’s loan guaranty service said.

Lower head counts at the mortgage giant reduced administrative expenses by $145 million in the second quarter, though profits were still down 9% sequentially.

Borrower demand is shifting month to month, largely tied to trends in mortgage rates.