An investor shares three stock purchases made during March's market downturn: Nvidia, Reddit, and Zillow. Nvidia is highlighted for strong AI-driven growth and attractive valuation despite its massive market cap. Reddit is praised for accelerating revenue and user growth despite a 52% decline from peaks. Zillow is positioned as a turnaround play in a depressed real estate market, though it carries the most risk due to macro headwinds.

US mortgage rates climbed to a six-month high of 6.38%, driven by surging oil prices amid the Iran conflict and rising inflation concerns. The 30-year fixed-rate mortgage has risen for four consecutive weeks, pressuring the already strained housing market. The Federal Reserve is expected to maintain steady rates through 2026-2027, while analysts characterize conditions as a normalization cycle rather than a market crash.

U.S. mortgage rates jumped to a three-month high of 6.22% following the Iran conflict, which increased oil prices and inflation expectations. The 10-year Treasury yield rose to 4.26%, while mortgage applications fell 11% and new home sales dropped significantly. President Trump signed an executive order to ease mortgage regulations and modernize home-buying processes.

JPMorgan reiterated an Overweight rating on Zillow Group with a $84 price target, citing the company's durable software and data moats despite concerns about AI disruption and regulatory scrutiny. The analyst highlights Zillow's category leadership, strong engagement as the most visited U.S. real estate platform, and competitive advantages through ShowingTime and Follow Up Boss adoption. Zillow announced a $1.25 billion buyback plan and is expected to showcase platform-level AI capabilities at an upcoming March 24 AI Summit. The company is projected to deliver 15% revenue growth and 25% adjusted EBITDA growth in 2026, outpacing industry growth.

Motley Fool analysts discuss the fifth trait of Rule Breakers: strong consumer appeal. They examine Zillow and Unity Software's recent earnings reports. Zillow demonstrated resilience with 16% revenue growth and strong brand recognition despite a sluggish real estate market, while Unity faced investor concerns over uneven geographic growth and missed guidance despite positive product developments with Unity Six.

Mortgage rates have fallen to 6.09%, the lowest since September 2022, making homes significantly more affordable. This 80 basis point drop from a year ago could benefit mortgage companies, home improvement retailers, and real estate platforms through increased refinancing activity and home purchases.

Zillow Group (ZG) stock has posted three consecutive days of gains after a nearly 50% collapse over five months. Despite a recent earnings miss, the company showed 18% year-on-year revenue growth, expanded margins, and achieved full-year profitability. With an RSI of 24 (extremely oversold), analysts like Piper Sandler see potential 50% upside with a $70 price target. However, the housing market remains challenged by elevated mortgage rates, and investors remain sensitive to guidance changes.

Ten large-cap stocks experienced significant declines last week. Pinterest fell 21.73% after missing Q4 earnings and issuing weak Q1 guidance with multiple downgrades. DraftKings dropped 18.65% following disappointing Q4 results and below-estimate FY26 guidance. Other major losers included Astera Labs (down 23.74%), Medpace (down 20.69%), Zillow (down 20.89%), and Flutter Entertainment (down 18.88%), driven by earnings misses, analyst downgrades, and broader tech sector concerns about AI trade profitability.

Zillow Group's stock fell 17% after the company reported strong revenue growth of 18% year-over-year and improved profitability, but provided Q1 guidance below Wall Street expectations. The shortfall was attributed to anticipated legal expenses from ongoing lawsuits, which are expected to reduce adjusted EBITDA margins by 2 percentage points in the first quarter.

Software stocks declined sharply with the iShares Tech-Expanded Software Sector ETF (IGV) falling over 3%, while major U.S. indexes posted modest gains. The January jobs report showed strong headline numbers but disappointing revisions, with 2025 job growth at its weakest since 2003. Bitcoin dropped over 3% to $66,000, and notable losers included Unity Software, Mattel, and Zillow, while semiconductors and energy stocks outperformed.

Opendoor Technologies stock surged 264% in 2025 driven by retail investor enthusiasm on social media, but the company faces significant headwinds. Operating in a weak real estate market with more sellers than buyers, Opendoor struggles with its home-flipping business model and reported substantial losses. Despite a new CEO implementing AI-driven strategies and potential interest rate cuts in 2026, the analyst believes the stock could face further declines similar to previous social media-fueled rallies like GameStop and AMC.

Compass stock surged 9.33% on January 7, 2026, following the announcement of a $750 million convertible notes offering to fund its merger with Anywhere Real Estate. The company also raised Q4 guidance and announced plans to add 800 agents, boosting investor confidence despite potential shareholder dilution from the offering.