Mortgage Rates Rise to 6.41% for 30-Year Fixed, Weighing on Zillow
Average U.S. mortgage rates rose with Zillow listing average purchase rates at 6.41% for a 30-year fixed loan, 6.39% for 20-year fixed and 5.84% for 15-year fixed, while refinance rates climbed to 6.43% for 30-year fixed. Elevated borrowing costs may curb homebuying demand and pressure Zillow’s transaction and advertising revenues.
1. Mortgage Rate Increases
Almost every mortgage rate tracked by Zillow’s lender marketplace rose day-over-day. Average purchase rates: 30-year fixed at 6.41% (unchanged), 20-year fixed at 6.39% (+32 bps), 15-year fixed at 5.84% (+4 bps), 5/1 ARM at 6.50% (+18 bps); refinance rates similarly climbed.
2. Potential Impact on Zillow
Higher borrowing costs may dampen mortgage originations and homebuying activity, reducing demand for Zillow’s listings and advertising services. Slower transaction volumes could weigh on the company’s quarterly revenue growth and market share.