30-Year Mortgage Rate Hits 6.37% While 15-Year Jumps to 5.82%
National average 30-year fixed mortgage rate rose to 6.37%, marking a 25 bps increase in one week, while the 15-year fixed climbed to 5.82%, up 17 bps. Rising borrowing costs may dampen homebuying demand and weigh on Zillow's advertising and mortgage marketplace revenues.
1. Mortgage Rates Increase Again
The national average 30-year fixed mortgage rate climbed to 6.37%, up 25 basis points since last week, while the 15-year fixed rate reached 5.82%, a 17 basis-point rise. Adjustable-rate mortgages also moved higher, with the 5/1 ARM at 6.50% and the 7/1 ARM at 6.31%.
2. Implications for Zillow's Business
Higher mortgage rates typically cool the housing market by reducing borrower affordability, which could slow home search traffic and advertiser demand on Zillow's platform. Zillow's mortgage marketplace may see reduced loan originations as refinance and purchase activity declines, potentially impacting its revenue growth.