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Zillow Research

Stories by Zillow Research

Mortgage Rates Reverse as Investors Expect Moderation

Mortgage rates fell this week, touching 20-year highs before retreating considerably in recent days. The sharp reversal over the past few trading sessions – a rarity these days – suggests that investors may finally be expecting some moderation in the Fed’s pace of monetary policy tightening and some softening in key economic data releases – the two factors that have combined to push rates firmly higher this year.

Zillow Home Value and Sales Forecast: October 2022

Zillow expects home value growth to continue to slow over the coming months. The national Zillow Home Value Index, which increased by 12.9% in the twelve months ending in September, is expected to grow by just 1.3% in the next twelve months, according to Zillow’s monthly home value forecast. This long-term outlook is in line with last month’s projections, which called for a 1.2% annual increase.

Expert Panel: Expect a Buyers Market by 2023

Sky-high mortgage costs are driving down competition among home shoppers, and a market firmly in favor of buyers is expected next year, according to a majority of economists and housing experts polled in the latest Zillow Home Price Expectations Survey (ZHPE). The expert, independent panel also expects rent growth to outpace inflation during the next 12 months, as priced-out potential home buyers exert additional pressure on the rental market. 

Mortgage Rates Move Higher, Have Doubled This Year

Markets reacted to the Federal Reserve increasing the target Fed Funds rate by 75 basis points last week and increasing their projections of future rate levels in 2023. Fed Chair Powell’s comments last week noted a need for restrictive monetary policy in the future with a focus on containing inflation, driving investors to raise their expectations for future interest rates.

Mortgage Rates Move Up on CPI Data Release

While interest rates continue to be volatile as markets adjust expectations for Fed rate hikes, mortgage rates ended the week basically unchanged at about 6% for a 30-year fixed rate loan. Economic data and comments from Fed officials last week point to the Federal Reserve continuing to raise the Fed Funds rate until inflation is under control.