Rate-lock tipping point: Homeowners are nearly twice as willing to sell if their mortgage rate is 5% or higher
New Zillow survey finds
Zillow's survey finds that about
As today's mortgage rates near
"We expect mortgage rates may notch down slightly as inflation comes under control, but they are unlikely to return to
There is reason to be optimistic that more homes could hit the market in the next few years. Zillow's survey finds that nearly one-quarter of homeowners are considering selling their home in the next three years or currently have their home listed for sale (
In the meantime, the shortage of for-sale homes is pushing up prices. Zillow's latest monthly market report finds that home values hit a record high in June, topping
Higher prices are compounding affordability challenges for buyers who are also facing today's higher mortgage interest rates. A typical monthly mortgage payment is more than twice as much as it was in 2020 and
While these challenges have tempered demand, buyers are persisting and getting creative to achieve homeownership. A recent survey from Zillow Home Loans finds that nearly half of all buyers are buying points to lower their interest rate and reduce their monthly mortgage payment (
There are tools to help buyers better understand what they can afford and to make homeownership more attainable. Buyers can find out if they're eligible for down payment assistance programs, which are listed on every for-sale home on Zillow. Buyers can also use mortgage and affordability calculators to understand what they can afford on a monthly basis, and then search for homes by monthly cost to land a home they can afford.
About Zillow Group:
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in
Zillow Group's affiliates, subsidiaries and brands include Zillow®; Zillow Premier Agent®; Zillow Home Loans℠; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+℠, which includes ShowingTime®, Bridge Interactive®, and dotloop®.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.
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SOURCE Zillow Group, Inc.