As part of the product planning for Zillow Mortgage Marketplace, we conducted research on borrower behavior, perceptions and concerns. The findings helped guide our thinking and shape the final product features. You can check out some survey highlights in our press room. Below are several interesting facts from recent surveys of the U.S. population1 and Zillow users2 worth noting:
People are still shopping for loans
One-third of homeowners say that despite any home value change over the past year, they are equally or more likely to do each of the following in 2008:
- 35% — Refinance or take out a second mortgage
- 33% — Sell their home
- 32% — Take out a home equity loan
Time Spent Shopping Doesn’t Match Investment
In the table below, we highlight the typical hours spent shopping for a number of home-related purchases. It’s surprising to see that U.S. adults spend more time shopping for a car purchase and just as much time for a vacation as they do a home loan, despite a significant difference in dollars invested. Additionally, the data shows that Zillow users typically spend more time than all U.S. adults shopping for loans, new homes, home improvements, and even televisions. This supports what we know: Zillow users like to be informed and are typically more engaged in the decisions that affect their homes.
When we looked at the data across regions, we noted some variations. On a regional basis, people in the Midwest spent the most time shopping for mortgages or home loans—almost twice as much time as those in the South and Northeast.
Majority of Loan Shoppers Have Concerns
Of U.S. adults who plan to shop for a home loan in the future, 82% have concerns about doing so. More have concerns about having their personal information sold or shared than about getting the best rate. However, the top concern among younger borrowers aged 18-34 is ending up with a payment greater than their budget, likely because younger adults tend to have fewer assets and relatively lower incomes.
Help for Loan Shoppers
Of U.S. adults who plan to be in the market for a home loan in the next year:
- 91% agree that a standardized quote form would make it easier to compare loan quotes from multiple lenders
- 82% say the recent rate cuts by the Federal Reserve make it more attractive to shop for a loan
- 77% say they would obtain more mortgage or home loan quotes if they could do so anonymously
Whether you’re currently in the market for a home loan or plan to be in the future, we hope you’ll try Zillow Mortgage Marketplace as part of your loan research process. We’ve incorporated valuable feedback through our development process to address some of the primary concerns and interests of borrowers today. This is just the beginning. We will continue to gather valuable input from consumers and lenders as we help them connect through Zillow Mortgage Marketplace.
Watch here for future updates on interesting metrics and data we obtain as the marketplace grows.
Sources:
1) Harris Interactive Survey. Conducted online on behalf of Zillow.com, March 2008. Hours shown are median number of hours among adults who purchased each item and spent at least one hour researching and shopping before doing so. Full details and methodology of survey are available upon request.
2) Zillow User Survey, March 2008.