Pending Home Sales Plunge 8.5% as Mortgage Rates Spike to 7.28%
Z is trading near its 52-week low of $26.67 (3.9% above the low).
Summary
Zillow's September pending home sales data shows an 8.5% year-over-year drop to 227,569 units, the sharpest decline since September 2023. The company's chief economist attributes the slump to mortgage rates jumping to 7.28% from 6.66% at the end of August. He now expects full-year home sales to rise only 1% versus a prior 5% forecast, calling it the fourth year of 'bouncing along the bottom.' This is a material negative read-through for Zillow's core residential transaction business, which depends on home sales volume. The stock is already trading near its 52-week low, and this data suggests further pressure on near-term revenue.
At the time of this announcement, Z was trading at $27.70 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $6.3B. The 52-week trading range was $26.67 to $79.40. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.