Sectors & IndustriesFinancial ServicesMortgage Finance

Best Mortgage Stocks to Buy Now (2026)

Top mortgage stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best mortgage stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best mortgage finance stocks to buy right now are:

Security National Financial (NASDAQ:SNFCA) is the #1 top mortgage stock out of 15 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Security National Financial (NASDAQ:SNFCA) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: A.

Security National Financial (NASDAQ:SNFCA) has a Due Diligence Score of 27, which is 4 points higher than the mortgage industry average of 23.

SNFCA passed 11 out of 38 due diligence checks and has average fundamentals. Security National Financial has seen its stock return 19.8% over the past year, overperforming other mortgage stocks by 49 percentage points.

Greystone Housing Impact Investors (NYSE:GHI) is the #2 top mortgage stock out of 15 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Greystone Housing Impact Investors (NYSE:GHI) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Greystone Housing Impact Investors (NYSE:GHI) has a Due Diligence Score of 12, which is -11 points lower than the mortgage industry average of 23.

GHI passed 4 out of 38 due diligence checks and has weak fundamentals. Greystone Housing Impact Investors has seen its stock lose -38.5% over the past year, underperforming other mortgage stocks by -9 percentage points.

Encore Capital Group (NASDAQ:ECPG) is the #3 top mortgage stock out of 15 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Encore Capital Group (NASDAQ:ECPG) is: Value: B, Growth: D, Momentum: C, Sentiment: C, Safety: D, Financials: C, and AI: C.

Encore Capital Group (NASDAQ:ECPG) has a Due Diligence Score of 34, which is 11 points higher than the mortgage industry average of 23.

ECPG passed 12 out of 33 due diligence checks and has average fundamentals. Encore Capital Group has seen its stock return 144.45% over the past year, overperforming other mortgage stocks by 174 percentage points.

Encore Capital Group has an average 1 year price target of $113.50, an upside of 13.52% from Encore Capital Group's current stock price of $99.98.

Encore Capital Group stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Encore Capital Group, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 3 mortgage stocks that have issued dividends in the past year, the 3 mortgage stocks with the highest dividend yields are:

Greystone Housing Impact Investors (NYSE:GHI) has an annual dividend yield of 13.19%, which is 3 percentage points higher than the mortgage industry average of 10.5%. Greystone Housing Impact Investors's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Greystone Housing Impact Investors's dividend has not shown consistent growth over the last 10 years.

Greystone Housing Impact Investors's dividend payout ratio of -218.4% indicates that its high dividend yield might not be sustainable for the long-term.

Walker & Dunlop (NYSE:WD) has an annual dividend yield of 7.79%, which is -3 percentage points lower than the mortgage industry average of 10.5%. Walker & Dunlop's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Walker & Dunlop's dividend has shown consistent growth over the last 10 years.

Walker & Dunlop's dividend payout ratio of 238.9% indicates that its high dividend yield might not be sustainable for the long-term.

Pennymac Financial Services (NYSE:PFSI) has an annual dividend yield of 1.91%, which is -9 percentage points lower than the mortgage industry average of 10.5%. Pennymac Financial Services's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Pennymac Financial Services's dividend has not shown consistent growth over the last 10 years.

Pennymac Financial Services's dividend payout ratio of 15.9% indicates that its dividend yield is sustainable for the long-term.

Mortgage stocks were down -1.74% in the last day, and up 3.37% over the last week. Beeline Holdings was the among the top losers in the mortgage finance industry, dropping -2.69% yesterday.

Beeline Holdings shares are trading lower after the company announced additional cost-cutting measures, including workforce reductions, infrastructure consolidation, and the elimination of legacy overhead costs.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued mortgage stocks right now are:

Security National Financial (NASDAQ:SNFCA) is the most undervalued mortgage stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Security National Financial has a valuation score of 29, which is 9 points higher than the mortgage industry average of 20. It passed 2 out of 7 valuation due diligence checks.

Security National Financial's stock has gained 19.8% in the past year. It has overperformed other stocks in the mortgage industry by 49 percentage points.

Velocity Financial (NYSE:VEL) is the second most undervalued mortgage stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Velocity Financial has a valuation score of 43, which is 23 points higher than the mortgage industry average of 20. It passed 3 out of 7 valuation due diligence checks.

Velocity Financial's stock has dropped -14.47% in the past year. It has overperformed other stocks in the mortgage industry by 15 percentage points.

Encore Capital Group (NASDAQ:ECPG) is the third most undervalued mortgage stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Encore Capital Group has a valuation score of 29, which is 9 points higher than the mortgage industry average of 20. It passed 2 out of 7 valuation due diligence checks.

Encore Capital Group's stock has gained 144.45% in the past year. It has overperformed other stocks in the mortgage industry by 174 percentage points.

44.44% of mortgage stocks rated by analysts are a buy right now. On average, analysts expect mortgage stocks to rise by 29.88% over the next year.

0% of mortgage stocks have a Zen Rating of A (Strong Buy), 0% of mortgage stocks are rated B (Buy), 50% are rated C (Hold), 41.67% are rated D (Sell), and 8.33% are rated F (Strong Sell).