Zillow: Rising Treasury Yields Threaten Fall Home Buyers’ Bargains
Zillow reported that while the fall can give home buyers more room to negotiate, a surge in Treasury yields is threatening to eat into those savings.
The online brokerage said that borrowing costs may climb just as shoppers make their last moves before the holiday slowdown.
According to Zillow, turmoil in the U.S. Treasury bond market is disrupting plans for shoppers hoping to buy a home at the tail end of the 2026 season, before sellers and buyers pack up for the holidays.
It noted that on Sept. 23, the 10-year Treasury yield logged the highest daily spike since April 2025, landing at 5.1%, its highest level in about two decades.
CNBC reported that U.S. Treasury yields edged higher on Monday as pressure on global government bonds resumed, amid higher oil prices and inflation fears.
The 10-year U.S. Treasury note yield —the key benchmark for mortgage borrowing, auto loans and credit card debt — was up nearly 5 basis points at 5.23%, CNBC reported.
Zillow said rising bond yields likely will put upward pressure on already-elevated mortgage rates.
How does it impact housing?
Zillow noted that the home shopping season has its perks and trade-offs – buying in the spring and summer brings the freshest options at higher prices, while fall and winter offer more options with the added benefit of price cuts for homes that lingered.
High borrowing costs can erode those off-season deals, Zillow said.
For the first half of 2026, the brokerage noted that home shoppers had better buying power than a year ago. It said that advantage officially ended in August.
Zillow noted that the mortgage payment on a typical home is 2% higher than a year ago, according to our latest Market Report. Zillow said it expects modest relief, for the 30-year fixed mortgage rate to ease slightly to 6.7% by year’s end and 6.3% by the end of 2027.
Zillow said that likely means affordability and sales may see more pressure before conditions improve.
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