Mortgage REITs

With the stock market in the red for the third straight week and recession warnings ramping up, markets are more volatile than ever.  Despite the Federal Reserve’s seven consecutive rate hikes this year, November inflation data were slightly hotter than expected, rejuvenating investors...

This year will long be remembered as one of the worst for real estate investment trust (REIT) stocks, and mortgage REITs (mREITS) declined more than most. Over the past 52 weeks, many of the mREITs were down 30% to 60%. While that scares many investors, others seek to take advantage of the huge...

When investing in mortgage real estate investment trusts (REITs) it is key to remember that these types of REITs do not actually own the property, rather they lend money directly or indirectly to owners and operators of the real estate. During periods of rising interest rates, short-term REITs...

The VanEck Mortgage REIT Income ETF (ARCA: MORT) is down roughly 31% year-to-date, as a series of interest rate hikes by the Federal Reserve has sent a shock through real estate-related industries. Mortgage REITs allow investors to join the real estate market without owning the physical...

Annaly Capital Management Inc. (NYSE: NLY) is one of the major mortgage real estate investment trusts (REITs), but it’s the company’s floating-rate preferred shares (NYSE: NLY-PF) that seem to be attracting investors’ attention.  These bondlike instruments make regular...

Income investors are always on the lookout for stocks that will produce high-yielding dividends, but many of these stocks do not perform well over the long term. Ironically, one of the most popular mortgage real estate investment trusts (mREITs) among income investors is a stock market laggard...

When investing in mortgage real estate investment trusts (REITs) it is important to remember that these firms lend money directly to owners and operators of real estate or indirectly through the purchase of mortgages or mortgage-backed securities. This way, mortgage REITs earn interest from its...

Rising interest rates and sky-high inflation have caused the real estate market to cool rapidly as mortgage rates hover near decade highs.  The housing market has witnessed a worse-than-expected decline in demand, with pending home sales down 31% year-over-year in September. Commercial real...

Real estate investment trusts (REITs) are some of the best options for investors looking to generate stable dividend income. This is because publicly traded REITs are required to distribute at least 90% of their taxable income to shareholders annually, as per Securities and Exchange Commission (SEC...

When investing in mortgage real estate investment trust (REIT) it is important to know that these funds hold a five-year average dividend yield of 10.8%. Mortgage REITs generate higher returns over a three-year period than a 10-year period, generating annualized returns of 10.3% and 8.2%,...

Mortgage real estate investment trusts (REITs( are companies that loan money on income-producing properties using mortgage-backed securities (MBS) or borrowing funds to originate their own mortgages.  The spread between borrowing costs and lending rates is what brings them profits. But rising...

You would be hard-pressed to find a worse-performing real estate investment trust (REIT) class in 2022 than mortgage REITs (mREITs). With over 8% inflation and the Federal Reserve raising interest rates multiple times, the mREIT group has been trounced.  Many mREITs are still maintaining...

The effects of rising interest rates continue to hit markets and none more so than in the mortgage sector. The amount of selling lately, for example, in Annaly Capital Management Inc. (NYSE: NLY) is remarkable for its extraordinary downward pressure on price levels. Here’s the daily price...

As real estate investment trusts (REITs) are required to distribute 90% of their taxable income to shareholders through dividend payments, and the rise in interest rates should prove to be a positive catalyst. Since mortgage rates have increased to 6%, REITs will have an upper hand in reeling in...

A long-standing tenet of investing holds that the greater the risk, the greater the reward. But every investor has a different tolerance for accepting risk. One measure of a stock’s risk is its beta, or how it compares with the entire stock market. A beta of 1.0 is said to be on par with the...