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With mortgage rates being so high, Zillow Home Loans has decided to offer people mortgages with a 1% down payment to U.S. homebuyers.

“Most markets are in the midst of an affordability crisis, and saving for a down payment remains one of the biggest barriers for many potential homebuyers,” Zillow said on the same day mortgage rates in America hit their highest level since 2001.

Mortgage rates continue to climb. The average rate on a 30-year home loan went up to 7.23% at the end of last week. It was at 7.09% the week before. When we look back at last year it is up significantly. It was at 5.55%, and the 7.23% is more than double what the rate was two years ago.

The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, rose to 6.55% from 6.46% last week. A year ago, it averaged 4.85%.

This is the fifth straight week that the average rates have risen. It is the first time since 2001 that has happened.

For now, homebuyers can take advantage of this offering for properties in Arizona. Zillow announced that it plans to expand the program to additional markets.  There were no specifics provided on where Zillow plans to expand the program to.

To hear Tony Katz’s concerns over this new program, click the link below.