This week’s mortgage and housing headlines revolve around Zillow. The FTC has filed an antitrust lawsuit accusing Zillow and Redfin of illegally suppressing competition in the online rental advertising space. Meanwhile, the “lock-in effect” continues to restrict housing inventory, as more homeowners cling to ultra-low mortgage rates. And the MBA reports a dip in mortgage application volume, indicating continued buyer caution. Together, these stories point to a market in flux—stuck between legal disruption, rate pressure, and demand softness. Zillow may be at the center of the legal spotlight, but the entire industry feels the ripple.
FTC Sues Zillow and Redfin Over Rental Advertising Monopoly
Read the Full Story → CNBC
The Federal Trade Commission has filed a lawsuit accusing Zillow and Redfin of entering an anti-competitive agreement. The FTC alleges that Zillow paid Redfin $100 million to exit the rental advertising business and exclusively syndicate Zillow’s rental listings.
According to the FTC, this deal harmed landlords, renters, and advertisers by consolidating market power and raising prices for rental property ads. The agency claims it violates federal antitrust laws and restricts competition in the multifamily digital ad space.
Zillow and Redfin argue that the agreement improved efficiency and benefited consumers. Still, the lawsuit could reshape digital advertising in the real estate sector, with broad implications for platforms, brokers, and marketers.
Lock-In Effect Continues to Limit Housing Supply
Read the Full Story → WolfStreet
WolfStreet’s latest update shows the “lock-in effect” still has a tight grip on the housing market. Many homeowners are reluctant to sell because they don’t want to give up mortgage rates under 3%, which were locked in during the pandemic.
The report shows that only about 20.4% of active mortgages still carry rates below 3%, while nearly 20% have crossed the 6% mark. That wide disparity keeps potential sellers sidelined, limiting housing inventory across the country.
Until more rate-stuck borrowers are willing—or forced—to move, platforms like Zillow may continue to face inventory shortages even as buyer interest slowly reemerges.
MBA Survey Shows Dip in Mortgage Applications
Read the Full Story → MBA
The Mortgage Bankers Association reports that mortgage applications declined by 0.5% last week. Both purchase and refinance activity were down, though the drop in refinancing was more pronounced.
This decrease suggests that higher interest rates and economic uncertainty are still weighing on borrower confidence. Even though rates have stabilized slightly, affordability concerns persist.
The trend reinforces that mortgage demand remains fragile—and platforms like Zillow that rely on search activity and ad engagement may see traffic shifts if consumer enthusiasm wanes further.
Loan Officer Perspective
The lock-in effect keeps many homeowners on the sidelines, but it also creates a unique window to educate clients on when it makes sense to move or refinance. Be the advisor they need—steady, smart, and always looking out for their best path forward.
Stay nimble with your product mix and marketing. A slower market is a chance to build better habits, clean up your CRM, and focus on quality over quantity.
Real Estate Agent Perspective
The Zillow lawsuit could create shifts in where and how listings are promoted. Be ready to adapt—whether that means experimenting with new ad platforms or doubling down on local SEO and organic reach. Don’t wait to pivot if change comes.
Coach sellers on ways to sweeten their offers and reassure them that today’s market still rewards well-presented homes.
Most importantly, help buyers navigate uncertainty. Walk them through the pros and cons of waiting versus acting now. You are their calm in the chaos—and that builds loyalty.
Home Buyer & Seller Perspective
If you’re a buyer: You may start to notice fewer homes for sale—that’s due to many owners staying put in their low-rate loans. But fewer buyers also means less competition. It’s a great time to explore your options, especially if you’re pre-approved.
If you’re a seller: You might feel stuck by your current mortgage rate. But the market is hungry for listings, and serious buyers are still out there. If you’re thinking about selling, your agent can help you crunch the numbers and see if it makes sense.
Call to Action: If you’re curious how this news affects your situation, reach out to the loan officer or real estate agent who shared this post. They’d love to help you talk through your next move—whether it’s buying, selling, or just planning ahead.
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