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Zillow Says Most Buyers Skip Mortgage Rate Shopping, Forfeiting About $1,100 a Year

Savings surge in high-cost metros, with San Jose buyers keeping about $4,750 a year from a half-point lower rate.

Overview

  • Nearly 7 in 10 mortgage shoppers submit only one application, according to Zillow’s Consumer Housing Trends Report.
  • On a typical $359,000 home, trimming the rate from 6.24% to 5.74% lowers the payment to about $2,253 a month and saves roughly $1,100 a year, assuming 20% down and typical taxes, insurance and maintenance.
  • That half-point difference would have made about 22,000 additional U.S. listings affordable to a median-income household in November 2025, including more than 1,200 in Dallas.
  • Savings are largest in expensive markets, reaching about $4,750 per year in San Jose and exceeding $2,000 in San Francisco, Los Angeles, San Diego, Seattle, Boston and New York.
  • Lender quotes vary widely — past studies show spreads from roughly 50 to as much as 130 basis points — underscoring the value of comparison shopping as affordability recently hit a three-year best on lower rates and record seller discounts.