Zillow Group expects revenue from its core Premier Agent business unit to decrease more than 20% year-over-year in the third quarter due to housing trends.

The Seattle company beat expectations for its second quarter earnings, reporting $1 billion in revenue and GAAP net income of $8 million. But shares were down more than 10% in after-hours trading.

The U.S. housing market is showing signs of cooling as mortgage rates rise with ongoing limited supply. Pending home sales fell 20% in June, compared to the year-ago period, and fell 8.6% from May.

by Taylor Soper