$Z

Zillow Group launched a program offering FHA borrowers up to 3.5% down payment assistance in 43 states. The second loan has no interest or monthly payments and is forgivable after five years. The initiative aims to boost mortgage volume amid affordability challenges, according to the company.

Zillow has integrated its home search tools into the Claude chatbot, allowing users to search for homes, review property values, and explore affordability. The connector enables users to request home tours, contact agents, and explore financing options. Zillow emphasizes that it does not share listing data with Anthropic. RealPlus also launched an AI connector for real estate data and tools in Claude and other AI assistants.

Zillow reports rising rental demand due to higher homeownership costs. The average U.S. rent is $1,932/month, while homeownership costs $3,037/month. Utah shows a larger gap, with rents at $2,500/month vs. $4,000/month to own. Higher mortgage rates, now at 7.4%, are driving this trend, according to Zillow and the Kem C. Gardner Policy Institute.

Zillow reports U.S. rental demand up 19.2% year over year, with typical rent at $1,932, a 2.7% increase. Single-family rental demand rose 21.6%, outpacing multifamily. High demand in San Jose and San Francisco saw rent growth, while other markets saw slower increases due to new supply. Concessions were offered on 39.6% of rentals.

Compass and Zillow are involved in lawsuits over private listings. Compass sued Zillow, alleging unfair listing-access rules, but the case was dismissed. Zillow later sued Compass and MRED, claiming they threatened listing data access. A judge ordered MRED to restore Zillow's access. Compass defends private listings as a privacy measure, while critics argue it reduces market transparency. U.S. housing data shows weak sales and affordability challenges.

Zilow Group (Z) and Quantinuum (QNT) each rose 11.05%, while Recursion Pharmaceuticals (RXRX) and Telefonaktiebolaget LM Ericsson (ERIC) gained 11.23% and 11.87%, respectively. Kyndryl Holdings (KD) climbed 11.87% after a deal with Toyota Group. Zilow and peers benefited from falling Treasury yields, while Morgan Stanley upgraded Quantinuum with a 69% upside target. Recursion partnered with Sanofi, and Ericsson reported better-than-expected Q3 earnings.

Zillow's report shows rental demand up 19.2% YoY in September, driven by high homebuying costs. Single-family home rentals rose 21.6%, outpacing multifamily. Average rent was $1,932, up 2.7% YoY, while homebuyer payments increased 5% to $3,037. Mortgage rates remained at 7.4%. San Jose and San Francisco saw the highest rent demand and growth. Landlords offered more incentives, with 39.6% of listings including concessions. Existing-home sales rose 1.5% MoM but fell 2.2% YoY.

Housing stocks like Zillow (Z), Opendoor (OPEN), Compass (COMP), and CoStar (CSGP) rose on Thursday amid a tech sell-off, benefiting from a drop in bond yields and mortgage rates. The 10-year Treasury yield fell 10 basis points, reducing 30-year mortgage rates to 7.33%. Despite recent gains, these stocks have underperformed over the past five years due to a sluggish housing market.

Opendoor (OPEN), Zillow (ZG), and Compass (COMP) shares rose 6-7% as 10-year Treasury yields fell to 5.1%, improving housing affordability. Opendoor's Q2 revenue dropped 43.6% YoY to $883M, missing estimates, but its contribution margin expanded to 5.8%. Management expects Q3 revenue growth of at least 20% YoY and positive adjusted net income by year-end.

Zillow Group's (Z) average 12-month price target decreased from $45.86 to $44.73, with estimates ranging from $31 to $80 per share. This implies a 56% upside from the Oct. 12 closing price. The consensus rating remains 'Buy' among 29 analysts, with 14 Buys and 15 Holds.