Announced on Monday, the new filter enables users to search for homes within a range of monthly mortgage payment prices that fit their budget, instead of just listing prices.
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Zillow on Monday unveiled a new tool that allows home shoppers to filter listings based on a monthly budget as fluctuating mortgage rates and home prices continue to stymy buyers.
The new filter on the Zillow app enables users to search for homes within a range of monthly mortgage payment prices that fit their budget, instead of just listing prices. The filter changes as mortgage prices go up and down, meaning search results will stay within a shopper’s budget, regardless of how mortgage rates move.
“Shoppers looking at list prices struggle to figure out what they can really afford because the mortgage rate is what makes or breaks a monthly payment,” Amanda Pendleton, consumer finance expert at Zillow Home Loans, said in a statement. “Adding in costs like taxes, insurance and HOA fees can quickly bust a shopper’s budget. This new search tool does the math, so shoppers can confidently jump into finding a home they love and can afford.”
Monthly mortgage costs have risen by $431 over the past year and remain highly volatile, often swinging $100 in either direction in the space of a month. High mortgage rates combined with high home price appreciation have resulted in monthly mortgage costs nearly doubling since 2020.
Typical home values peaked in June 2022 before tapering off slightly, but mortgage rates, which hit 20-year highs later that year, caused monthly mortgage payments to peak in October, according to Zillow data.
“Fast-rising mortgage rates last year pushed monthly costs up with unprecedented speed, dragging affordability to its lowest point in more than 20…