Zillow Mortgage Rates Rise to 6.20% on 30-Year Fixed, 11 Bps Gain
Zillow lender marketplace data show fixed-rate mortgage rates rose for a second week, with the 30-year fixed rate at 6.20% (up 11 basis points) and the 15-year fixed rate at 5.66% (up eight basis points). Rising global energy costs linked to Middle East tensions contributed to rate increases.
1. Weekly Rate Movements
Data from Zillow’s lender marketplace show the 30-year fixed mortgage rate climbed to 6.20%, up 11 basis points week over week, while the 15-year fixed rate rose eight basis points to 5.66%. Other averages moved higher as well, including the 20-year fixed at 6.01% and the 5/1 ARM at 6.12%.
2. Driving Factors
Escalating tensions in the Middle East have driven up global energy prices, prompting lenders to adjust borrowing costs upward. The decline in risk appetite and increased funding costs have both contributed to the rise in mortgage rates.
3. Implications for Zillow
Higher rates typically dampen purchase and refinance activity, which could reduce loan submissions through Zillow’s mortgage marketplace. A slowdown in mortgage volume may pressure the company’s origination-related revenue and overall valuation.