Most home buyers skip rate shopping, potentially costing them hundreds a month

Rhea-AI Summary

Z (Zillow) analysis dated Dec 11, 2025 finds nearly 7 in 10 mortgage shoppers submit only one application, potentially costing buyers thousands over a loan.

On a typical U.S. home valued at $359,241, a drop from 6.24% to 5.74% on a 30-year fixed reduces monthly payments from about $2,345 to $2,253, saving roughly $1,104 per year. Zillow estimates that level of savings would have made 22,000 more homes affordable nationwide in November 2025. Larger metros show bigger annual savings (e.g., $4,752 in San Jose).

Positive

• Nearly 70% of mortgage shoppers apply to only one lender
• Typical-home savings of $1,104 per year at 5.74% vs 6.24%
• 22,000 additional homes become affordable for median-income buyers

Negative

• Affordability remains strained despite recent improvement
• Failure to rate-shop can cost buyers >$1,000 annually on typical purchase

Key Figures

Single mortgage application Nearly 7 in 10 buyers Share of mortgage shoppers submitting only one application

Typical U.S. home value $359,241 United States typical home value, November 2025 (table)

Average mortgage rate 6.24% Average 30-year fixed rate in November on typical U.S. home

Payment at 6.24% $2,345 per month Typical monthly mortgage cost for U.S. home at 6.24% rate

Lower shopped rate 5.74% Rate within typical range for buyers comparing multiple offers

Annual savings $1,100 per year Savings from reducing rate by 50 basis points on typical U.S. home

Additional affordable homes 22,000 homes More homes affordable to a median-income U.S. household with lower rate

San Jose annual savings $4,752 per year Annual savings from lower rate in San Jose market

Market Reality Check

$75.78 Last Close

Volume Volume 1,857,559 vs 20-day average 2,401,287 (relative volume 0.77x) indicates muted trading interest ahead of this release. normal

Technical Price at $75.53, trading above 200-day MA of $74.02 and 19.55% below the 52-week high of $93.88.

Peers on Argus

Z rose 1.26% with mixed peer action: ZG up 1.33%, PINS up 2.28%, while NBIS, BIDU and TME declined between -0.18% and -2.24%, suggesting a stock-specific rather than broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 04	Housing outlook report	Positive	-0.8%	Forecast of modest 2026 housing rebound with improving affordability metrics.
Dec 02	Conference presentation	Positive	+5.4%	Barclays tech conference fireside chat increasing investor visibility.
Nov 24	Conference appearance	Positive	+3.1%	UBS Global Technology and AI Conference participation by CFO.
Nov 24	Market discounts study	Neutral	+0.9%	Analysis of record price cuts and discount patterns across key metros.
Nov 20	Segregation analysis	Negative	-1.8%	Report on private listings reinforcing segregation in Chicago housing.

Pattern Detected

Recent Zillow macro and thought-leadership pieces often saw modest price reactions, with one notable divergence where a positive 2026 housing outlook coincided with a small share-price decline.

Recent Company History

Over the past month, Zillow has issued several research-driven and investor-relations updates. On Nov 20, it highlighted segregation risks from private listings, followed by a Nov 24 analysis on record listing discounts. Investor-focused visibility increased through presentations at the UBS Global Technology and AI Conference and the Barclays 23rd Annual Global Technology Conference. On Dec 4, Zillow economists projected a modest 2026 housing rebound. Today’s mortgage-rate shopping analysis continues this pattern of data-rich housing market insights rather than company-operational announcements.

Market Pulse Summary

This announcement highlights how small mortgage rate differences can translate into savings of about $1,100 a year on a typical U.S. home and make roughly 22,000 additional homes affordable to a median-income household. It underscores Zillow’s focus on affordability analytics and tools that model payments at rates like 6.24% versus 5.74%. In context of prior research pieces on discounts and future housing conditions, investors may track how such insights support engagement across Zillow’s Rentals, Residential and Mortgages segments.

Key Terms

basis points financial

"A buyer can save $1,100 a year by reducing their mortgage rate 50 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

Even small rate differences can expand the number of homes within reach for buyers facing strained affordability

• Nearly 7 in 10 mortgage shoppers submit only one application.
• A buyer can save $1,100 a year by reducing their mortgage rate 50 basis points when they purchase a typical U.S. home.
• A savings of this size would have made 22,000 more homes on the market affordable for a median-income U.S. household.

SEATTLE, Dec. 11, 2025 /PRNewswire/ -- Home shoppers spend months searching for the right home, but most gather quotes from only one mortgage lender. That seemingly small decision can be a missed opportunity that costs buyers tens of thousands of dollars over the life of a loan, a new Zillow® analysis shows.

Home buyers typically invest months into the search process between hiring an agent, touring homes and making offers. Yet, when it comes to a mortgage, many buyers stop after the first quote, despite the huge financial stakes. Nearly 7 in 10 mortgage shoppers submit only one application, according to Zillow's Consumer Housing Trends Report.

"Buyers often spend months finding the right home, but only minutes comparing lenders," said Kara Ng, senior economist at Zillow Home Loans. "Even a small difference in rate can meaningfully shrink a monthly payment and expand the number of homes within reach. Affordability is tough enough today that buyers shouldn't overlook any potential savings."

Zillow's analysis shows that on a typical U.S. home worth about $360,000, a buyer paying 6.24% — the average 30-year fixed rate in November — would owe about $2,345 each month.¹ At 5.74% — within the typical range for shoppers who compare multiple offers — the payment drops to $2,253, saving roughly $1,100 a year. In November, that savings would have been enough to make 22,000 more homes nationwide affordable to a median-income household.

These differences only grow in higher-cost markets. In San Jose, landing the lower rate would save a buyer about $4,750 a year, and annual savings would exceed $2,000 in six other expensive metros. When looking at homes on the market in November, the potential savings from rate shopping would bring more than 1,200 additional listings within a typical buyer's budget² in Dallas, the most in the country.

Lenders weigh credit profiles, loan types and market conditions differently, meaning the same borrower can receive materially different offers. In a 2019 analysis, Zillow found spreads of from 90 to 130 basis points between the best and worst quotes for borrowers, depending on their credit profile. A more recent analysis from Freddie Mac showed home buyers can see rates move 50 basis points in either direction when receiving quotes from different lenders.

While affordability remains stretched for many prospective home buyers, it recently reached a three-year best, thanks in part to lower mortgage rates and record-high discounts from home sellers. Home shoppers can see how different rates would affect their monthly payment and which homes fit their budget using tools on Zillow, including Zillow Home Loans' BuyAbility℠ tool and the affordability calculator.

Metro Area*	Typical Home Value (November 2025)	Typical Monthly Mortgage Cost (6.24% Rate)	Annual Cost Difference (5.74% Rate)	Annual Cost Difference (6.74% Rate)
United States	$359,241	$2,345	-$1,104	+$1,140
New York, NY	$699,395	$4,821	-$2,160	+$2,208
Los Angeles, CA	$932,886	$5,664	-$2,868	+$2,952
Chicago, IL	$334,512	$2,397	-$1,032	+$1,056
Dallas, TX	$359,523	$2,565	-$1,116	+$1,128
Houston, TX	$303,675	$2,130	-$936	+$948
Washington, DC	$567,340	$3,624	-$1,752	+$1,788
Philadelphia, PA	$375,501	$2,553	-$1,152	+$1,188
Miami, FL	$467,083	$3,324	-$1,440	+$1,476
Atlanta, GA	$376,192	$2,484	-$1,152	+$1,188
Boston, MA	$709,859	$4,551	-$2,184	+$2,244
Phoenix, AZ	$441,999	$2,623	-$1,368	+$1,392
San Francisco, CA	$1,087,917	$6,711	-$3,360	+$3,432
Riverside, CA	$574,943	$3,608	-$1,776	+$1,812
Detroit, MI	$256,081	$1,742	-$780	+$816
Seattle, WA	$730,101	$4,581	-$2,256	+$2,304
Minneapolis, MN	$375,610	$2,559	-$1,152	+$1,188
San Diego, CA	$910,768	$5,524	-$2,808	+$2,880
Tampa, FL	$354,666	$2,451	-$1,092	+$1,116
Denver, CO	$559,323	$3,479	-$1,728	+$1,764
Baltimore, MD	$391,727	$2,531	-$1,212	+$1,236
St. Louis, MO	$263,197	$1,841	-$816	+$828
Orlando, FL	$382,156	$2,587	-$1,188	+$1,200
Charlotte, NC	$382,169	$2,393	-$1,176	+$1,212
San Antonio, TX	$274,977	$1,993	-$840	+$876
Portland, OR	$536,764	$3,414	-$1,656	+$1,692
Sacramento, CA	$567,352	$3,579	-$1,752	+$1,788
Pittsburgh, PA	$221,009	$1,539	-$684	+$696
Cincinnati, OH	$297,208	$2,040	-$912	+$948
Austin, TX	$422,294	$3,001	-$1,308	+$1,332
Las Vegas, NV	$426,817	$2,548	-$1,308	+$1,344
Kansas City, MO	$311,790	$2,161	-$960	+$984
Columbus, OH	$319,706	$2,199	-$984	+$1,008
Indianapolis, IN	$285,179	$1,883	-$876	+$900
Cleveland, OH	$239,597	$1,735	-$744	+$756
San Jose, CA	$1,539,985	$9,222	-$4,752	+$4,860
Nashville, TN	$447,624	$2,717	-$1,380	+$1,416
Virginia Beach, VA	$359,155	$2,375	-$1,104	+$1,140
Providence, RI	$498,503	$3,281	-$1,536	+$1,572
Jacksonville, FL	$345,365	$2,334	-$1,068	+$1,092
Milwaukee, WI	$364,421	$2,362	-$1,128	+$1,152
Oklahoma City, OK	$239,569	$1,728	-$744	+$756
Raleigh, NC	$431,547	$2,740	-$1,332	+$1,368
Memphis, TN	$240,716	$1,662	-$744	+$756
Richmond, VA	$380,431	$2,414	-$1,176	+$1,200
Louisville, KY	$268,531	$1,754	-$828	+$852
New Orleans, LA	$252,775	$1,973	-$780	+$792
Salt Lake City, UT	$551,356	$3,316	-$1,692	+$1,740
Hartford, CT	$377,750	$2,753	-$1,164	+$1,188
Buffalo, NY	$273,962	$1,688	-$852	+$864
Birmingham, AL	$252,254	$1,606	-$780	+$804

*Table ordered by market size 

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 app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®.

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). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

(ZFIN)

¹ Assuming a 20% down payment. Figures include estimates for principal, interest, taxes, insurance and maintenance costs.
² For the purposes of this analysis, a home is considered affordable if the monthly payments would take up no more than 30% of a median income.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/most-home-buyers-skip-rate-shopping-potentially-costing-them-hundreds-a-month-302638751.html

SOURCE Zillow

FAQ

What did Zillow (Z) report about mortgage shopping on December 11, 2025?

Zillow reported nearly 7 in 10 mortgage shoppers submit only one application, increasing borrower costs.

How much could a typical buyer save by reducing the mortgage rate by 50 basis points (Z, Dec 11, 2025)?

On a typical U.S. home ($359,241) a 50 bps drop from 6.24% to 5.74% saves about $1,104 per year.

Which metro showed the largest annual savings from rate-shopping in Zillow's Dec 11, 2025 analysis?

San Jose showed the largest annual savings of about $4,752 per year at the lower rate.

How many more homes would be affordable if buyers secured the lower rate, according to Zillow's November 2025 data?

Zillow estimates roughly 22,000 additional listings nationwide would be affordable to a median-income household.

Does Zillow provide tools to estimate rate-shopping impact on budget (Z, Dec 11, 2025)?

Yes. Zillow highlights its BuyAbility tool and affordability calculator to compare rates and monthly payments.