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Zillow Tumbles to Two-Year Low as Rising Rates Weigh on Housing Outlook

With costlier mortgages and a shortage of listings, CEO Rich Barton says `the market is  softening, full stop.’ 

Zillow Shuts Home-Flipping Business After Racking Up Losses
Photographer: Tiffany Hagler-Geard/Bloomberg
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Zillow Group Inc. plummeted to a two-year low Friday after an underwhelming outlook stoked investor fears that rising mortgage rates will cool the U.S. housing market. 

The shares were down 11.3% at 10 a.m. New York time to $34.65, the lowest intraday level since April 2020.

The company is projecting that its internet, media and technology segment will bring in $134 million to $169 million in earnings before interest, taxes, depreciation and amortization in the second quarter, according to a shareholder letter published Thursday. Home sales usually pick up in the spring, but Zillow’s outlook indicates that higher mortgage rates and low inventory of for-sale homes will finally slow activity.