Mortgage Rates Keep Declining: 3 mREIT Stocks to Consider for 2026
mREIT Industry Trends: The mortgage REIT industry faced volatility in 2025 due to macroeconomic uncertainty, with mortgage rates fluctuating and a notable decline to 6.21% by December, following a series of interest rate cuts by the Fed.
Investment Opportunities: Investors are encouraged to consider mREIT stocks like Two Harbors Investments Corp, NexPoint Real Estate Finance, and Ellington Financial, which are expected to deliver strong returns in 2026 due to improving economic conditions and declining mortgage rates.
Company Performance: Two Harbors reported a significant reduction in net interest losses, while NexPoint saw a substantial increase in net interest income, reflecting improved portfolio performance. Ellington Financial maintained stability through diversified investments and risk management strategies.
Future Outlook: Economic growth is anticipated to accelerate in 2026, with lower inflation and unemployment, which will likely lead to favorable conditions for mortgage origination and refinancing, benefiting the mREIT sector.
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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.
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.
