Zillow Tempts Struggling Homebuyers with a 1% Down Payment Offer
Zillow Group Inc. is offering a new mortgage program that requires just a 1% down payment to attract house hunters, who are facing the most-unaffordable market in almost four decades. The 1% down payment program is even lower than Freddie Mac’s best of 3%, with Zillow offering to pay 2% of the down payment at closing, according to a statement. This program comes after mortgage rates in the US hit a 22-year high, further squeezing would-be homebuyers. The average for a 30-year, fixed loan was 7.23%, the highest since May 2001 and up from 7.09% last week, Freddie Mac said in a statement.
In the midst of rising mortgage rates, which recently hit a 22-year high in the US, Zillow's initiative comes as a welcome relief for potential homebuyers. The average rate for a 30-year fixed loan soared to 7.23%, the highest since May 2001. This significant increase from 7.09% just last week, as reported by Freddie Mac, underscores the urgency of finding affordable mortgage solutions.
Zillow's 1% down payment offering is a strategic move to expand its customer base and level the playing field with larger competitors in the real estate market. While this bold step may impact profit margins, the promise of contributing 2% at closing demonstrates Zillow's commitment to helping individuals achieve homeownership, even in challenging times.
The great news is that Zillow is launching this groundbreaking program in Arizona initially, with plans to expand to other markets soon. This initiative comes on the heels of Zillow's previous ventures, including an ambitious foray into home flipping in 2021. Despite past challenges, Zillow remains dedicated to innovating and providing solutions that empower both homebuyers and sellers.
If you're a Florida resident looking to enter the real estate market or make a smart move in this dynamic environment, keep a close eye on Zillow's offerings. The 1% down payment program could be your ticket to achieving your real estate goals. Stay tuned for more updates as Zillow continues to reshape the future of real estate in the Sunshine State.