Zillow Launches “BuyAbility” Tool For Home Shoppers
Zillow Home Loans launched a new tool to help buyers gauge whether they can afford a home.
Users input their income, credit score, and monthly budget. BuyAbility then offers buyers a real-time estimate of the price and monthly payment on a home they’re considering, personalized to their specific budget. It also gives users an idea of whether they could qualify for a loan on a specific property.
The program operates on real-time mortgage rates from Zillow Home Loans, so users can check back regularly to see how their finances stack up as the market changes.
“What many people don’t realize is that your mortgage rate is highly dependent on your credit score. The better your credit score, the lower the rate you’ll qualify for, potentially saving you hundreds of dollars a month,” said Orphe Divounguy, senior economist at Zillow Home Loans.
“BuyAbility is personalized to a buyer’s credit score, income and down payment, and updated regularly to reflect current mortgage rates, giving home shoppers a true understanding of their buying power. BuyAbility is a great starting point for buyers who may be hesitant to look under the hood of their finances, or share personal details with a loan officer.”
The median monthly housing payment grew to a new record high of $2,894 during the four weeks ending May 5, up 14% YOY. But rates moved down last week after trending up for more than a month as new data pointed to cooling inflation. Affordability remains at the forefront of buyers’ minds and movement in the market has depended on minor shifts in these metrics.
If rates sustainably move down in the coming weeks, more buyers and sellers may enter the market between now and June, a period which is typically a busy season for homebuying.
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