Stocks and Investing
Stocks and Investing
3 mREIT Stocks Worth Investing Despite Rising Mortgage Rates
- Mortgage rates moved up last week and reached the highest point since July 2024. Per the Freddie Mac report, the average rate on a 30-year fixed-rate mortgage was 6.91% as of Jan. 2, 2025, up from 6.85% a week earlier.
The article from MSN Money discusses three mortgage real estate investment trusts (mREITs) that could be worth investing in despite the backdrop of rising mortgage rates. It highlights that while higher rates generally pose challenges for mREITs due to increased borrowing costs and potential decreases in property values, certain mREITs are positioned to weather these conditions better than others. The article focuses on AGNC Investment Corp., known for its focus on agency mortgage-backed securities which are backed by government-sponsored enterprises, offering a degree of safety. Starwood Property Trust, Inc. is praised for its diversified investments across commercial and residential real estate, providing a buffer against sector-specific downturns. Lastly, Annaly Capital Management, Inc. is noted for its strategic management and diversified portfolio, which includes both agency and non-agency MBS, potentially offering resilience in a rising rate environment. The piece suggests that these mREITs could still provide attractive dividends and potential for capital appreciation due to their strategic positioning and management practices.
Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/general/3-mreit-stocks-worth-investing-despite-rising-mortgage-rates/ar-AA1xbyE1 ]
Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/general/3-mreit-stocks-worth-investing-despite-rising-mortgage-rates/ar-AA1xbyE1 ]
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