Mortgage Rates Drop to 6.15% by Year-End 2025, Signaling Relief for Homebuyers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Source: NASDAQ.COM
- Rate Decline: As of December 31, 2025, the average 30-year fixed mortgage rate fell to 6.15% from 6.91% a year earlier, significantly reducing borrowing costs and likely stimulating homebuyer demand in 2026.
- Market Rebound: The continued decline in mortgage rates, coupled with slower home price growth, positions 2026 as a potential rebound year for the mortgage market, with improved financing conditions expected to boost transaction activity and stabilize demand.
- Investment Opportunities: Mortgage real estate investment trusts (mREITs) like Ellington Financial, Annaly Capital, and NexPoint Real Estate Finance are likely to benefit from the improving housing backdrop, attracting investor interest and enhancing fundamentals.
- Earnings Outlook: Ellington Financial anticipates year-over-year earnings growth of 25.3% and 1.6% for 2025 and 2026, respectively, indicating strong growth potential and reinforcing its market position.
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Analyst Views on EFC
Wall Street analysts forecast EFC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EFC is 15.00 USD with a low forecast of 14.50 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 13.360
Low
14.50
Averages
15.00
High
16.00
Current: 13.360
Low
14.50
Averages
15.00
High
16.00
About EFC
Ellington Financial Inc. is a real estate investment trust. The Company acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets. The Company’s segments include the Investment Portfolio Segment and the Longbridge Segment. The Investment Portfolio Segment is focused on investing in a diverse array of financial assets, including residential and commercial mortgage loans, residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), consumer loans and asset-backed securities (ABS), including ABS-backed by consumer loans, collateralized loan obligations (CLOs), non-mortgage- and mortgage-related derivatives, debt and equity investments in loan origination companies, and other strategic investments. The Longbridge Segment is focused on the origination and servicing of, and investment in, reverse mortgage loans. The Company is externally managed and advised by Ellington Financial Management LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ellington Financial Announces Redemption of Preferred Shares
- Redemption Plan: Ellington Financial's Board has authorized the redemption of 4.6 million shares of Series A Preferred Stock at a price of $25.00 per share plus accrued dividends, effective February 27, 2026, aimed at optimizing capital structure and reducing future dividend obligations.
- Trading Suspension: The Series A Preferred Stock will be suspended from trading on the NYSE before the redemption date, allowing the company to focus resources on other investment opportunities while mitigating market volatility impacts on shareholders.
- Transparent Process: The redemption will be executed through the Depository Trust Company (DTC), with Equiniti Trust Company acting as the redemption agent, ensuring a smooth redemption process that enhances investor confidence and maintains the company's reputation.
- Forward-Looking Statements: The company cautions that future performance may be influenced by various factors; while the redemption plan aims to enhance financial flexibility, attention must be paid to potential impacts from market volatility and interest rate changes on operations.
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ELLINGTON FINANCIAL STOCK DROPS 3.9% FOLLOWING $119 MILLION SHARE SALE
Stock Performance: Ellington Financial shares have decreased by 3.9%.
Recent Sale: This decline follows a significant stock sale amounting to $119 million.
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