Rumors have swirled recently about Zillow scaling back its mortgage services. With the housing market still reeling from high rates and low inventory, some wonder if the real estate giant is quietly exiting the lending space. The short answer: No, Zillow isn’t winding down its Mortgage Marketplace entirely. But changes are afoot that could make it less prominent, as the company doubles down on its own lending arm. Let’s unpack the facts.
What Is Zillow’s Mortgage Marketplace?
Zillow’s Mortgage Marketplace is a handy tool on its platform. It lets users compare rates and options from multiple third-party lenders in one spot. Launched years ago, it helps home shoppers quickly gauge costs without jumping between sites. Brokers and smaller lenders love it for generating leads from Zillow’s massive traffic—over 220 million monthly unique users.
But here’s the rub: As Zillow Home Loans ramps up, the marketplace feels sidelined. It’s still there if you dig, but it’s not front-and-center anymore. This shift isn’t a full shutdown. Instead, it’s part of a “vertical integration” push. Zillow wants to control more of the home-buying process, from listings to loans.
Recent Developments: Growth in Zillow Home Loans
Far from retreating, Zillow’s in-house lending is booming. In Q2 2025, Zillow Home Loans hit $1.1 billion in home purchase volume. That’s a nearly 50% jump year-over-year. CEO Jeremy Wacksman called it a “major milestone” during earnings calls, signaling big ambitions in mortgages.
This growth explains the marketplace tweaks. Why promote competitors when your own product is thriving? Zillow still lists rates from partners on its mortgage rates page, updated daily as of September 12, 2025: 30-year fixed at 6.125%, 15-year at 5.25%, and 7-year ARM at 5.875%. But the emphasis is shifting to Zillow Home Loans for full applications.
Why the Confusion? Past Shutdowns and Market Pressures
The rumor mill got fueled by Zillow’s history. Remember Zillow Offers, their iBuying program? It shut down in 2024 after losing millions on price predictions. That axed 25% of the workforce and shook confidence. Some folks lump that in with mortgages, but they’re separate.
The broader market adds heat. Home prices are up 2.6% year-to-date, with Zillow forecasting another 2.6% rise in 2025. Sales are stuck at 4.3 million units, barely budging. High rates—hovering around 6.34% as of September 8—keep buyers sidelined. Construction lags too, down 6% for single-family homes from June 2024 to 2025. Wacksman warned of a “tepid” market through year-end.
In this freeze, Zillow’s revenue still climbed double-digits in Q2 2025, thanks to ads and leads. But smaller lenders worry: Fewer marketplace spots mean fewer leads. One broker told The Truth About Mortgage it’s “unfortunate” for choice, as consolidation favors big players.
Impact on Homebuyers and the Industry
For U.S. buyers, this means fewer easy comparisons. The marketplace’s reduced visibility could steer folks toward Zillow Home Loans or giants like Rocket Mortgage. Studies show more lender options lower rates by up to 0.1-0.2%. Less choice? Potentially higher costs in an already tough market.
Experts like Kara Ng from Zillow say affordability woes run deeper: Even at 4.43% rates, median homes ($369,000) strain budgets. In metros like New York or LA, zero rates wouldn’t help due to taxes and upkeep.
Brokers feel the pinch hardest. Local pros rely on Zillow for 20-30% of leads. A quieter marketplace could force consolidations or pivots to sites like LendingTree.
Expert Takes and Public Buzz
Analysts are split. The Points Guy sees Zillow’s pivot as smart—owning the loan pipeline boosts margins. But NerdWallet warns it “limits options” for shoppers. On Reddit’s r/RealEstate, threads buzz: “Zillow killing the marketplace?” One user griped, “It’s buried now—pushing their loans hard.”
Wacksman pushed back in July 2025: Zillow’s thriving amid gloom because folks still “Zillow Surf”—dream-scrolling listings. Revenue’s up 60% stock-wise, proving resilience.
The Bottom Line: Evolving, Not Exiting
Zillow isn’t winding down its Mortgage Marketplace—it’s de-emphasizing it to fuel Zillow Home Loans’ surge. The tool lives on, just less flashy. In a market craving affordability, this vertical play could streamline buys but squeeze competition.
Watch for Q3 earnings in November. If volumes keep climbing, expect more integration. Buyers: Shop around anyway—tools like Bankrate still compare rates. The housing chill persists, but Zillow’s adapting, not retreating.