Mortgage Rates Just Hit Their Lowest Point Since 2022 — Here's What Stocks Could Be Winners

Although the stock market has been rather turbulent so far in 2026, there is one positive piece of data that recently came out. Mortgage rates just reached their lowest level in more than four years.

The average 30-year, fixed-rate mortgage has an interest rate of 6.09%, according to the Mortgage Bankers Association. That’s the lowest since September 2022 and is approximately 80 basis points lower than the average rate a year ago.

Obviously, this is good news for people who want to buy a home, but there are even more implications that could move several different types of stocks. Here’s exactly what this means for homeowners, and what stocks could be positively impacted by lower mortgage rates.

Why a 6.09% mortgage rate is such a big deal

At first glance, this might not sound like big news. After all, the average 30-year mortgage rate was about 3% just five years ago, and 6.09% is still high compared to most of the past two decades.

However, it’s important to put some numbers behind what this means for home affordability. Let’s say you’re in the market for a $400,000 home and plan to put 20% down. That means you’ll need to finance $320,000 with a mortgage.

One year ago, the average 30-year fixed-rate mortgage had an interest rate of 6.88%. And mortgage rates peaked at 7.86% in late 2023. Here’s what this means for your monthly payment:

Data source: Author’s calculations. Payments are rounded to the nearest dollar and only include principal and interest.

This makes the typical U.S. home significantly more affordable than it was a year ago. Not only that but consider the interest savings. Someone who buys a $400,000 home with today’s mortgage rates would save $166 per month compared to buying the same home a year ago. But here’s the key point. Over the life of a 30-year mortgage, that makes the home $59,760 cheaper.

How this could affect stocks

Obviously, this could provide a major tailwind for mortgage companies. Not only could it result in more home purchases, but the bigger near-term impact could be refinancing. Think about it — if you bought a home anytime in the last three years or so, you can likely cut your monthly payment significantly by refinancing.

Because of high interest rates, refinancing activity has been extremely slow. But with U.S. homeowners having $35 trillion in home equity (an all-time high), falling mortgage rates could result in a volume surge for Rocket Companies (RKT 3.61%), mortgage-focused banks like Wells Fargo (WFC +2.40%), and companies that offer home equity loan products like Upstart (UPST +0.64%).

A less obvious beneficiary could be home improvement retailers and adjacent manufacturers. Simply put, homeowners often finance large purchases by tapping into their home equity, which hasn’t been a financially appealing option in recent years. In fact, Home Depot (HD 3.26%) has repeatedly cited homeowners’ reluctance to take on big projects as a reason for its so-so results. But retailers like that, as well as suppliers of home renovation materials like Trex (TREX +4.85%), just to name one example, could be big beneficiaries.

Finally, if lower mortgage rates lead to increased homebuying activity, platforms like Zillow (ZG +2.05%)(Z +2.08%), which primarily makes its money from listing-related fees, could see traffic and listing volumes rise.

In a nutshell, lower mortgage rates could produce several types of winners in the stock market — and that’s especially true if rates get even lower from here.