Wedbush analysts today upgraded Zillow Group (ZG, Z) shares to Outperform from Neutral, citing favorable trends in the housing market, particularly the recent drop in mortgage rates. In a note, Wedbush analyst Jay McCanless called lower mortgage rates a "potentially positive catalyst" for the stock in the months ahead.

A mortgage rate is how much interest a buyer pays to take out a loan when they purchase a property. It’s essentially the cost of taking out a loan. A buyer will owe this interest annually as a percentage of the loan’s total balance. Mortgage lenders make money by charging interest on the loan.

The Federal Reserve is set to issue its first rate cut since 2020 this week. Here's what it means for mortgage rates.