3 REIT Stocks Worth Watching With Mortgage Rates at 6.66%

Mortgage rates in the U.S. have reached 6.66% on the average 30-year loan, which puts a spotlight on rental housing and residential REIT stocks that are more tied to tenants than homebuyers. Higher borrowing costs can cool home sales and reshape housing demand, which matters for companies that own or operate rental properties. This article looks at 3 stocks from a rental housing and REIT screener that appear closely linked to this rate shock. You will see where the current backdrop may offer opportunity and where extra caution could be sensible.

American Healthcare REIT (AHR)

Overview: American Healthcare REIT is a self-managed REIT based in Irvine that owns and operates a large portfolio of senior housing, skilled nursing facilities, outpatient medical buildings and other healthcare properties across the U.S., U.K. and Isle of Man, while also originating secured loans tied to healthcare real estate.

Operations: The company generates most of its revenue from Integrated Senior Health Campuses at about US$1.84b, with additional contributions from SHOP properties at US$369.1m, outpatient medical buildings at US$123.7m and triple-net leased properties at US$39.5m, largely in the United States where revenue totals about US$2.36b.

Market Cap: US$10.8b

American Healthcare REIT provides direct exposure to the long term need for senior housing and skilled nursing at a time when higher mortgage rates are pushing many people toward renting rather than owning. The stock combines this demand backdrop with a diversified healthcare footprint, a sizeable income-focused portfolio and active capital raising that supports further acquisitions. At the same time, a very high P/E, lower 2026 earnings guidance and reliance on external borrowing introduce valuation and funding risks that investors should consider. Governance is a mixed picture, with strong board independence alongside recent insider selling and no new directors in several years. The key question is whether the company’s strategic positioning and rental exposure sufficiently offset these trade offs.

American Healthcare REIT’s rental heavy healthcare portfolio is attracting fresh attention, yet the real story sits in how its valuation and funding mix stack up against the risks that are easy to overlook in the 3 key rewards and 3 important warning signs (1 is major!)

CareTrust REIT (CTRE)

Overview: CareTrust REIT is a healthcare focused REIT that owns, acquires, develops and leases skilled nursing, senior housing and other healthcare related properties to a network of specialist operators across the U.S. and U.K., giving investors broad exposure to rental income from long term care facilities.

Operations: CareTrust REIT generates about US$522.6m in revenue from investments in healthcare related real estate assets, all from properties located in the United States.

Market Cap: US$9.84b

CareTrust REIT is notable in a world of 6.66% mortgage rates because it is tied to rental based care facilities rather than home sales, with a portfolio of skilled nursing and senior housing properties that can be comparatively attractive when ownership becomes harder to afford. Management has talked about higher rates creating more deal flow for the company, citing stressed buyers and a slower debt market. A roughly US$600m pipeline and raised 2026 earnings guidance indicate how actively it is deploying capital. At the same time, reliance on external borrowing, dividend coverage that is not fully supported by earnings and recent share issuance highlight the importance of funding discipline. The key consideration for investors is how that trade off looks once all the risks are weighed.

CareTrust REIT’s growing deal pipeline and rental focus could be masking a more complex trade off between fresh opportunities and funding pressures. Get the full picture in the 3 key rewards and 2 important warning signs

Property Franchise Group (AIM:TPFG)

Overview: Property Franchise Group is a U.K. residential lettings and estate agency franchisor that sells territories and supports a network of locally run offices under brands such as Belvoir, EweMove, Hunters and Martin & Co, serving landlords, tenants, buyers and sellers.

Operations: The company generates about £47.5m from Property Franchising, £24.2m from Financial Services and £12.6m from Licensing, with all £84.3m of reported revenue coming from the United Kingdom.

Market Cap: £285.5m

Property Franchise Group offers exposure to a rental heavy U.K. housing market at a time when higher mortgage costs are keeping more households in lettings rather than ownership. The franchise model leans on local operators while retaining central scale, and recent figures such as a 22.6% net margin and high quality earnings indicate a business that converts revenue into profit efficiently. At the same time, an unstable dividend record, reliance on external borrowing and a relatively new management team mean this is not just a simple income story. The key question is whether the current valuation discount and earnings profile properly reflect these cross currents or leave room for a stronger long term outcome.

Property Franchise Group’s high quality earnings and franchise scale hint at an underappreciated story that could be more than a simple rental housing proxy. The real twist sits in the full narrative for Property Franchise Group

The three stocks in this article are just a starting point, since the full Rental Housing and Real Estate Investment Trusts (REITs) screener highlights 10 more rental focused and residential REIT companies with equally compelling stories tied to housing demand and mortgage rate pressures. Use Simply Wall St to identify and analyze the specific catalysts, funding profiles and rental narratives that matter most to you so you can focus on the highest conviction opportunities in this space.

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Seeking Fresh Alternatives Beyond These REITs

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• Zero in on sturdier balance sheets using the list of solid balance sheet and fundamentals (45 results) that filters for companies with room to move when conditions tighten. Do not delay while these are still flying under most radars.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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