Zillow Mortgage Purchase Volume Rises 55% in Q3
Buyers financing through Zillow see more purchase lending even as rate shock slows conversions across the housing market.
Updated on Nov. 5, 2026 in Residential
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Zillow Home Loans grew its purchase mortgage volume 55% in the third quarter of 2026 while industry purchase originations declined, according to the company's quarterly results. Zillow's mortgage revenue of $70 million missed analyst forecasts for home buyers and sellers tracking the lender's expansion.
Why it matters
For buyers financing a home through Zillow's lending arm, the growth signals that more purchase loans are being written even as the broader market cools. Zillow attributed its revenue miss to rate shock, which reduced conversions, a dynamic that can affect how quickly families close on a house.
Zillow Home Loans originated $1.972 billion in purchase loans in the third quarter, up from $1.276 billion a year earlier, a 55% gain. Mortgage revenue reached $70 million, up 32% year-over-year but 13.9% below the $81.3 million Keefe, Bruyette & Woods had forecast.
The players
Zillow Home Loans
The mortgage lending arm of Zillow, the real estate marketplace known for its home-search and valuation tools, which reported the quarter's purchase growth.
Keefe, Bruyette & Woods
A financial services firm whose mortgage revenue forecast of $81.3 million was missed by Zillow's actual results.
The details
Zillow expanded the share of buyer connections routed through its Preferred program, an invitation-only network of real estate agents, and under that model it captures mortgage revenue at origination, which can arrive six to 12 months later. That timing gap means the revenue recognized in a given quarter reflects loans set up well before the closing date. The company posted a $158 million net loss for the quarter, compared with $10 million of net income in the third quarter of 2025.
Timeline
Third quarter 2026: Zillow reported 55% purchase volume growth and a $158 million net loss.
Late third quarter 2026: Mortgage rates rose sharply, and the increase continued into the start of the fourth quarter.
Fourth quarter 2026: Zillow guided mortgage revenue to $55 million to $56 million and expects industry purchase volumes to fall 10% to 15% year-over-year.
The Home Front
Zillow's purchase growth sits against its own estimate that industry purchase originations fell 4% in the third quarter, a sign that share gains are masking a softer market. The company's expansion of its Preferred agent network has shifted more of its mortgage revenue into the future, tying lending results to housing activity months ahead.
If you are shopping for a home loan, compare offers from several lenders, since rate movement is currently shaping how many buyers close. Ask any lender for a written breakdown of rate, fees, and closing timeline before committing, and keep your pre-approval documents current.
The takeaway
Zillow's growth shows that a lender can gain purchase volume even as the overall market slows, so falling industry numbers do not always mean fewer options for buyers. Before choosing a mortgage, ask a licensed loan officer to explain how rate changes would affect your monthly payment, and keep that conversation on file.
What happens next
Zillow guided fourth-quarter mortgage revenue to $55 million to $56 million and expects industry purchase volumes to fall 10% to 15% year-over-year, figures that will be tested when fourth-quarter results are reported.
Further reading
For context on how home purchase lending trends affect buyers across the country, explore the Residential section.
Source note: This article includes information reported by National Mortgage News.
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