Housing has been stuck in a weird freeze: buyers want lower rates, sellers want 2021 prices, and everyone is pretending this is normal.
If borrowing costs keep easing, the thaw could show up fast in mortgages, listings, new builds, and the companies that get paid every time someone moves, upgrades, or signs a stack of paperwork.
Gold Surge (Sponsored)
Gold blasted past $4,300 recently. It's up almost 50% in the past year. But why settle for 50% like most coin buyers… when past gold cycles have thrown off gains of 2,300%, 7,746%, even 9,850%?
Weiss Ratings' gold expert Sean Broderick reveals what he believes is a more profitable way to play this surge. No futures, no options, no vault required.
See Sean's top 5 gold plays before you make your next move
Why To Watch This Theme
When rates fall, housing does not just get “a little better.”
It can flip from gridlock to movement, and movement is the whole game.
Here is the chain reaction:
Lower mortgage rates → buyers re-enter, and affordability improves
Buyers re-enter → listings move faster and new builds stay busy
More transactions → more demand for loans, title, and housing services
More new builds and remodels → more demand for materials and labor
This theme matters because housing is a volume business.
A small change in rates can unlock a big change in activity, especially after a long slowdown where people postponed everything from moving to refinancing to basic home upgrades.
What we want to see to stay bullish
Mortgage rates trending down or at least staying stable
Existing home sales and pending sales showing steady improvement
Builders holding margins while keeping demand strong with incentives
Refi volume picking up, even modestly, as homeowners finally get a reason to act
What can ruin the party
If rates bounce back up, if jobs weaken meaningfully, or if affordability stays stretched due to high prices, the thaw turns into a fake spring.
Everyone goes outside, then regrets it immediately.
Rocket Companies (RKT)
What it does: Mortgage origination and servicing, plus related home loan services.
In simple terms, it makes money when people take out mortgages, refinance, and stay active in home financing.
Why it fits: This is one of the most direct ways to play a refi comeback. When rates fall, the refinance phone starts ringing again.
Even a small move can matter because refis have been so quiet that the bar is basically on the floor.
What could go right:
Refi volume rebounds from depressed levels, driving higher origination volume
Purchase mortgages improve as buyers return and inventory loosens
Operating leverage shows up as volume rises faster than costs
Servicing provides a stabilizing base while origination cycles turn
What to watch next: Mortgage rate trends, refi indexes, and management commentary on funnel activity.
Also watch margins per loan. When competition heats up, lenders can get sloppy on pricing.
Risk: Mortgage is a knife fight. If competitors price aggressively, volume can come with thinner profitability. Also, if rates stall, the “refi revival” turns into a ghost story.
Zillow Group (Z)
What it does: Online real estate marketplace with listings, advertising, and services tied to the home shopping funnel.
Why it fits: When housing activity picks up, traffic tends to follow. More browsing turns into more leads, and more leads tend to turn into more revenue opportunities.
Zillow is basically the front door most people use before they even think about a mortgage application.
What could go right:
More transactions drive more agent and partner spend
Housing inventory improves, making the platform more useful and sticky
Better conversion and product improvements lift revenue per visitor
Momentum builds as buyers stop doomscrolling rates and start touring houses again
What to watch next: Housing transaction data, traffic trends, and monetization.
A housing recovery is great, but the stock likes proof that higher activity translates into higher dollars, not just higher clicks.
Risk: If the housing recovery is uneven or slow, traffic can be fine while monetization lags. Also, real estate advertising can tighten quickly if agents get cautious.
Top AI Picks (Sponsored)
The next leg of AI growth is set to emerge from advanced data infrastructure, a segment gaining powerful momentum beneath the surface.
Leaders in this space are showing strong operational expansion, increasing government interest, and growing enterprise adoption.
These developments are quietly creating high-probability setups for early movers.
As demand accelerates, positioning inside this sector could produce significant compounding potential.
A FREE report highlights all nine opportunities poised to benefit from this surge.
Download your FREE Report Now.
D.R. Horton (DHI)
What it does: Homebuilder focused on scale, entry-level exposure, and broad geographic reach.
Why it fits: Builders have been the unexpected winners in a tight-inventory world. When existing homeowners refuse to sell, buyers often end up in new builds.
If rates ease, builder demand can hold up, and incentives can become less necessary.
What could go right:
Affordability improves, pulling more first-time buyers back into the market
Incentive pressure eases, helping margins stabilize or improve
Scale advantages keep costs competitive
Backlog and orders show steady demand instead of one-off spikes
What to watch next: Orders, cancellation rates, and gross margin trends. You want to see demand hold without builders needing to bribe the market with endless rate buydowns.
Risk: Homebuilders can look invincible right up until affordability bites again. If rates rise or the job market weakens, demand can soften quickly.
Builders FirstSource (BLDR)
What it does: Supplies building materials and components to homebuilders and contractors, including lumber, windows, doors, and other inputs tied to residential construction.
Why it fits: This is a volume play on housing activity. If builders keep building and remodel activity stays alive, suppliers and distributors can benefit.
It is less about housing sentiment and more about are we actually pouring concrete.
What could go right:
New home construction stays steady as buyers favor new builds
Product mix improves if demand shifts toward higher-value components
Cost discipline supports margins even if pricing normalizes
Repair and remodel adds a second demand stream beyond new builds
What to watch next: Demand commentary from builders, housing starts, and pricing trends in key materials.
Also watch whether the company can keep margins steady if commodity pricing gets less friendly.
Risk: Materials and distribution can be cyclical. If construction slows, volumes drop and operating leverage works in reverse.
Breakout Alerts (Sponsored)
Every market cycle produces a select group of companies that drastically outperform the rest.
The latest screening has pinpointed the 5 Stocks Set to Double, each showing rare traits linked to early stage momentum.
These names carry the same type of indicators that have historically appeared ahead of strong rallies.
Earlier reports featured stocks that delivered +175%, +498%, and +673%.
Get the Free 5 Stocks Set to Double Report.
Fidelity National Financial (FNF)
What it does: Title insurance and transaction services tied to real estate closings. It gets paid when homes change hands and when loans get done.
Why it fits: This is the toll booth on the transaction highway. If housing thaws, closings rise, and title volume tends to follow. It is not glamorous, but it is directly linked to activity levels.
What could go right:
Existing home sales recover, lifting title volumes
Refi activity returns, adding another stream of transaction work
Operational efficiency improves earnings as volume picks up
The business benefits from a broad rebound across purchase and refi
What to watch next: Existing home sales, refi trends, and any sign transaction counts are rising consistently, not just bouncing around week to week.
Risk: If transaction recovery is slow, title remains sluggish even if home prices look fine. This is a volume business, and volume is the whole point.
Want to make sure you never miss a stock recommendation?
Elite Trade Club now offers text alerts — so you get trending stocks and market-moving news sent straight to your phone before the bell. Email’s great. Texts are faster.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
Click here to get our daily newsletter straight to your cell for free.
P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.
