30-Year Mortgage Rate Jumps to 7.05% and 15-Year to 6.30%, Impacting Housing Demand
National average 30-year fixed mortgage rate climbed to 7.05% and the 15-year fixed rate rose to 6.30% on May 9, reversing last week’s downtrend. Higher borrowing costs could curb refinancing and new home sales, potentially weighing on Zillow’s real estate transaction and advertising segments.
1. Mortgage Rate Uptick
On May 9 the benchmark 30-year fixed mortgage rate climbed to 7.05% while the 15-year fixed rate ticked up to 6.30%, marking the first increase after a four-session decline. Rising Treasury yields and persistent inflation pressures have driven lenders to push rates higher, reversing the easing trend seen earlier in the week.
2. Potential Impact on Zillow
Elevated borrowing costs may suppress refinance applications and dampen home purchase activity, which could translate into lower lead generation and transaction volumes for Zillow’s marketplace. Slower mortgage originations and reduced consumer engagement may in turn pressure Zillow’s mortgage-related services and its ad revenue from real-estate professionals.