Mortgage rates have soared this week, hitting an average of 7.23%, the highest level for 22 years. Even a year ago, your clients could lock in a 30-year fixed for 5.5%. And things aren’t going to get any better soon — rates are going to stay high or even climb further, according to Sam Khater, Freddie Mac’s chief economist.
In what may be a glimmer of a silver lining, there is some good news for home buyers. Tech real-estate marketplace Zillow Group Inc. has announced a 1% down payment scheme in an attempt to woo potential homebuyers navigating one of the toughest real estate climates in nearly 40 years.
Analysts at Bloomberg Intelligence suggest that while Zillow's aggressive 1% strategy could potentially increase its market share and offer a competitive edge against industry giants, it may come at a considerable financial strain. Covering the 2% down payment (to reach the advertised 1%) could have long-term financial implications.
Initially, the mortgage program will be launched in Arizona, with plans to roll it out to more regions soon. This comes after Zillow decided to discontinue its ambitious venture into the home-flipping business in 2021 as a result of significant financial setbacks.
Zillow’s latest Consumer Housing Trends report released earlier this week shows that millennials are currently form the largest proportion of homebuyers at 37%, followed by Gen X at 23%.
The largest proportion of homebuyers (currently) live in the South (41%), then the Midwest (23%).
How much deposit are homebuyers putting down?
| 2021 | 2022 | 2023 | |
| <3% | 10 | 12 | 8 |
| 3%-5% | 12 | 16 | 14 |
| 6%-9% | 14 | 9 | 8 |
| 10%-19% | 25 | 21 | 18 |
| 20% | 21 | 20 | 23 |
| 21%-99% | 18 | 21 | 29 |
Data: zillow.com
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.
Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.
Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
