Rocket Companies Inc ( RKT ) shares are trading higher Tuesday morning, extending momentum from Monday's rally as investors continue to react to a fresh analyst upgrade and improving sentiment around housing and mortgage-related stocks. Here’s what investors need to know.

Rocket Companies ( RKT ) stock is showing upward movement. Why are RKT shares climbing?

Analyst Upgrade Lifts Rocket Companies Stock

On Monday, Keefe, Bruyette & Woods upgraded Rocket Companies ( RKT ) to Outperform from Market Perform and raised its price target to $22 from $20, helping ignite a strong move in shares.

The call added to renewed investor optimism around mortgage originators, which have lately drawn interest on hopes that a more supportive policy backdrop could help improve demand and profitability.

Trump Mortgage Policy Shift Boosts Sector Outlook

That backdrop was reinforced by the Trump administration's recent executive order aimed at deregulating parts of the U.S. mortgage market. The order seeks to ease compliance burdens for smaller lenders, revise Ability-to-Repay and Qualified Mortgage rules and promote digital mortgage tools such as e-signatures, e-notes and remote online notarization.

The administration has argued the steps could lower costs for borrowers, expand credit access and streamline the homebuying process. Recent actions could reduce mortgage costs for homebuyers, although the broader economic impact remains to be seen.

Rocket, which operates a large digital mortgage platform, is likely seen as one of the companies that could benefit from mortgage standardization and looser lending rules under the new framework.

Rocket Companies RSI Nears Oversold Levels

Rocket Companies' ( RKT ) RSI has mostly fluctuated within the neutral range (30–70) over the past year, with occasional spikes into overbought territory above 70.

Recently, the RSI has trended downward toward the oversold threshold near 30, suggesting weakening momentum and potential for a near-term bounce.

Analyst Consensus Shows Moderate Upside for RKT

Analyst Consensus & Recent Actions: RKT stock carries a Hold Rating with an average price target of $19.78. Recent analyst moves include:

Keefe, Bruyette & Woods: Upgraded to Outperform (Raises Target to $22.00) (Mar. 16)

Compass Point: Initiated with Buy (Target $21.00) (Mar. 10)

Wells Fargo: Equal-Weight (Raises Target to $19.00) (Feb. 27)

RKT Shares Edge Higher Tuesday

RKT Price Action: Rocket Companies ( RKT ) shares were up 1.69% at $15.01 at the time of publication on Tuesday, according to Benzinga Pro data.

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