Listen up… While everyone’s busy patting themselves on the back for snagging a lower mortgage rate, smart investors are quietly positioning for something much, much bigger. The housing market is about to WAKE UP in a way we haven’t seen in years, and 2025 will be the year it all explodes.
Here’s the situation: I’m hearing whispers of a “soft landing” for the economy. And while that’s still up in the air, ONE thing is certain – the Federal Reserve is about to SLASH interest rates. They have to. The economy is slowing down, unemployment is ticking up.
Lower rates mean cheaper mortgages. Cheaper mortgages mean more buyers. More buyers mean more houses changing hands. That’s Economics 101. But most folks are missing the HUGE knock-on effect this will have on TWO specific types of companies…
1. Zillow Group Inc. (Z): The “Transaction Machine”
Forget about whether Zillow can actually sell you a house (their iBuying debacle taught them a lesson there). What matters is that Zillow is the go-to platform for ANYONE even thinking about buying or selling.
Two gurus in my network are BULLISH on real estate right now. Chris Johnson at Money Morning just highlighted Zillow, saying “At some point, I’m going to hit the “Schedule a Viewing” button just like everyone else in my position… Bam, they’re on their way to making a small payday.” [Read his full analysis here].
He’s right. More eyeballs on Zillow means more listings, more ad revenue, and more leads for their Premier Agent program. It’s a TRANSACTION MACHINE, and it prints money whether prices go up or down, as long as activity is high.
2. Rocket Companies Inc. (RKT): Fueling the Fire
The other side of the boom is the financing. People need mortgages to BUY these houses, and that’s where Rocket Companies comes in. They’re the BIGGEST mortgage lender in the U.S., and they’re about to feast.
Again, Chris Johnson is on the money here. Two months ago, he called Rocket a “Fast Profits” trade, and the stock has already blown past his initial target! [He lays out his reasoning here, it’s worth a read]. But now he’s upgraded his target even HIGHER, saying Rocket is “set for another 30% run” [See his updated analysis here].
With rates dropping, Rocket is going to be writing mortgages hand over fist. And let’s not forget about refinancing… When rates hit 5% or lower, it’ll be a REFI-MANIA.
What You Should Do Now:
Don’t wait for the headlines screaming about a housing boom. By then, the smart money will have already made its move. Position yourself NOW with these two stocks. They’re both in BULLISH uptrends, but they still have plenty of room to surge as we head into the 2025 housing bonanza.
And stay tuned tomorrow, because I’m diving into a strategy that could give you an even BIGGER edge… It’s a way to spot hidden opportunities the mainstream completely misses, and it all comes down to what the INSIDERS are doing.