After an impressive 2012, mortgage REITs have struggled in 2013 due to rising interest rates. Yields for the benchmark 10-year note have risen from lows of around 1.63 percent in May to around 3.0 percent currently. The iShares Mortgage Real Estate Capped ETF (NYSEARCA: REM) and the Market Vectors Mortgage REIT ETF have both fallen approximately 10.0 percent year-to-date. Mortgage REITs had benefited previously from an ultra-low interest rate environment as it attracted home owners to refinance their mortgage rates. "When rates rise, REITs will have to allocate more cash to debt servicing and less to business reinvestment and dividend payouts to investors. Higher rates will also make REIT yield less attractive, putting downward pressure on the sector’s valuation." stated Morningstar analyst Abby Woodham.
Capstead Mortgage Corporation (NYSE: CMO) shares traded in the range of $11.82 to $11.99 Thursday before settling to close at $11.94, an increase of 2.40 percent. The stock appears to be facing some resistance at the $11.96 and $12.05 levels with some support at $11.78. Shares of Capstead Mortgage have gained approximately 4.0 percent in 2013.
More information on Capstead Mortgage and access to the free equity report can be found at:
www.WallStreetFundamentals.com/CMO
Dynex Capital Inc. (NYSE: DX) shares traded in the range of $8.26 to $8.43 Thursday before settling to close at $8.34, an increase of 1.34 percent. The stock appears to be facing some resistance at the $8.80 and $9.40 levels with some support at $8.28. Shares of Dynex Capital have fallen approximately 11.0 percent in 2013.
More information on Dynex Capital and access to the free equity report can be found at:
www.WallStreetFundamentals.com/DX
New York Mortgage Trust, Inc. (NASDAQ: NYMT) shares traded in the range of $6.26 to $6.37 Thursday before settling to close at $6.31, an increase of 0.64 percent. The stock appears to be facing some resistance at the $6.60 and $6.79 levels with some support at $6.25.
More information on New York Mortgage Trust and access to the free equity report can be found at:
www.WallStreetFundamentals.com/NYMT
Starwood Property Trust, Inc. (NYSE: STWD) shares traded in the range of $23.92 to $24.15 Thursday before settling to close at $24.04, an increase of 0.54 percent. The stock appears to be facing some resistance at the $24.28 and $24.94 levels with some support at $23.28. Shares of Starwood Property Trust have gained approximately 4.7 percent in 2013.
More information on Starwood Property Trust and access to the free equity report can be found at:
www.WallStreetFundamentals.com/STWD
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