30-Year Mortgage Rate Rises to 7.12%, 15-Year Rate Hits 6.35%
Average 30-year fixed mortgage rate increased by 7 basis points to 7.12% and 15-year fixed rose 5 basis points to 6.35% on May 9, 2026. Higher borrowing costs may curb refinancing applications and reduce homebuyer traffic on Zillow’s platform, potentially pressuring its mortgage-related revenues.
1. Mortgage Rate Movements
On May 9, 2026, the average 30-year fixed mortgage rate climbed by 7 basis points to 7.12%, while the 15-year fixed rate rose by 5 basis points to 6.35%. This marks a reversal from the previous week’s slight pullback and reflects ongoing Federal Reserve policy expectations.
2. Impact on Refinance Market
Rising rates typically deter homeowners from locking in new loans, and activity in the refinance segment has already shown signs of softening this week. Mortgage application data indicate a downward trend which could further dampen volumes if rates continue upward.
3. Implications for Zillow’s Platform
Zillow derives a significant portion of its revenue from mortgage-related listings and referral fees, so slower refinance and purchase searches could translate into lower lead generation. Reduced traffic may pressure Zillow’s core marketplace fees over the coming quarters.
4. Outlook and Analyst Views
Most analysts expect rates to stay above 7% through the summer, barring a major shift in economic data. Continued rate volatility could prompt adjustments in Zillow’s guidance for transaction volumes and related profitability.