Zillow Mortgage Rates Jump Across Products, 30-Year Fixed Hits 6.41%
Zillow lender marketplace rates rose last week, with the 30-year fixed up 16 basis points to 6.41%, 5/1 ARM up 22 basis points to 6.63% and 15-year fixed up 14 basis points to 5.80%. Higher rates may curb mortgage originations and cut Zillow’s marketplace fee revenue.
1. Mortgage Rates Surge Across Terms
Data shows the 30-year conforming fixed rate rose 16 basis points to 6.41%, the 20-year fixed climbed 12 basis points to 6.07%, the 15-year fixed added 14 basis points to 5.80%, and the 5/1 ARM jumped 22 basis points to 6.63%.
2. Impact on Borrower Costs
At a 6.41% rate, a $300,000 30-year mortgage carries a $1,878 monthly payment and $376,254 total interest, while a 15-year loan at 5.80% costs $2,499 monthly with $149,869 in interest over the loan’s life.
3. Potential Effect on Zillow Marketplace
Higher borrowing costs typically dampen purchase and refinance activity, which could reduce application volume and transaction fee income for Zillow’s lender marketplace.
4. Borrower Strategies to Offset Rates
Consumers may improve credit scores, increase down payments, purchase discount points at closing or use temporary buydowns to secure lower effective mortgage rates.