Mortgage rates are a key factor in the home-buying process, and online shopping activity suggests consumers are paying close attention to borrowing costs. With rates around 7.5%, Zonda’s Homebuyer Outlook Clicks Index, which tracks NewHomeSource online new-home shopping activity, has fallen to its lowest level since 2022.
Of course, the relationship between rates and shopping activity is not one-to-one. The job market, broader economy, stock market, geopolitical uncertainty, and consumer confidence can all influence whether prospective buyers start searching for a home. The stability of mortgage rates can matter as well.
Still, the Homebuyer Outlook data suggests 7% may represent an important psychological threshold for consumers.
When mortgage rates first moved above 7% in 2022, online shopper activity weakened noticeably. Another significant pullback occurred as rates climbed well above 7% in late 2023. The latest data shows a similar pattern, with the Clicks Index dropping in September as mortgage rates approached 7.5%.
That relationship matters because online shopping often represents an early step in the purchase funnel. Fewer consumers browsing new-home options can translate into a smaller pool of prospects moving toward community visits and eventual purchases.
Importantly, Zonda’s Homebuyer Outlook shows that the right communities can still outperform even in a challenging market. For builders, that puts the focus beyond simply generating traffic and toward understanding which buyers remain engaged, what they can afford, and how closely a community’s location, product, and price point align with those consumers.
The insights in this article were taken from more in-depth research reports published in Zonda’s Homebuyer Outlook subscription.
