July 23 (Reuters) - Real estate information provider

CoStar Group ( CSGP ) cut its annual revenue forecast on

Tuesday, as high interest rates restrained spending and

discouraged property buying.

Shares of CoStar ( CSGP ), which competes with rival home-search

sites like Zillow ( ZG ) and Redfin, were down 1.1% in

extended trading.

The housing market has been one of the hardest hit by

the U.S. Fed's high interest rate regime since early 2022. Last

year, existing home sales fell to their

lowest levels since 1995

, with the supply of homes for sale remaining tight.

Many homeowners are reluctant to sell because their current

home loans are locked in at much lower rates, and buying another

house would likely mean higher rates and added costs.

This limited inventory continues to keep house prices

inflated.

The Washington, D.C.-based CoStar Group ( CSGP ) now expects

annual revenue to be between $2.74 billion and $2.75 billion,

compared to its prior expectations of $2.76 billion to $2.77

billion.

Analysts, on average, expected annual revenue of $2.77

billion, according to LSEG data.

The company expects third-quarter revenue to be between $692

million and $697 million, the mid-point of which is below

estimates of $703.5 million.

For the second-quarter ended June 30, CoStar's ( CSGP ) revenue rose

12% to $678 million, compared with estimates of $677.2 million.

It earned an adjusted profit per share of 15 cents, compared

with average estimates of 9 cents per share.