Sectors & IndustriesFinancial ServicesMortgage Finance

Best Mortgage Stocks to Buy Now (2025)

Top mortgage stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% 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:

Encore Capital Group (NASDAQ:ECPG) is the #1 top mortgage stock out of 15 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

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

Encore Capital Group (NASDAQ:ECPG) has a Due Diligence Score of 9, which is -14 points lower than the mortgage industry average of 23. Although this number is below the industry average, our proven quant model rates ECPG as a "B".

ECPG passed 3 out of 33 due diligence checks and has weak fundamentals. Encore Capital Group has seen its stock lose -8.98% over the past year, underperforming other mortgage stocks by -19 percentage points.

Pennymac Financial Services (NYSE:PFSI) is the #2 top mortgage stock out of 15 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Pennymac Financial Services (NYSE:PFSI) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: B.

Pennymac Financial Services (NYSE:PFSI) has a Due Diligence Score of 38, which is 15 points higher than the mortgage industry average of 23.

PFSI passed 15 out of 38 due diligence checks and has average fundamentals. Pennymac Financial Services has seen its stock return 26.21% over the past year, overperforming other mortgage stocks by 16 percentage points.

Pennymac Financial Services has an average 1 year price target of $138.67, an upside of 10.22% from Pennymac Financial Services's current stock price of $125.81.

Pennymac Financial Services stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Pennymac Financial Services, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Onity Group (NYSE:ONIT) is the #3 top mortgage stock out of 15 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Onity Group (NYSE:ONIT) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: D, and AI: C.

Onity Group (NYSE:ONIT) has a Due Diligence Score of 31, which is 8 points higher than the mortgage industry average of 23.

ONIT passed 10 out of 33 due diligence checks and has average fundamentals. Onity Group has seen its stock return 26.08% over the past year, overperforming other mortgage stocks by 16 percentage points.

Onity Group has an average 1 year price target of $55.00, an upside of 46.78% from Onity Group's current stock price of $37.47.

Onity Group stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Onity 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 5 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 11.73%, which is 7 percentage points higher than the mortgage industry average of 5.1%. Greystone Housing Impact Investors's dividend payout is not stable, having dropped more than 10% six 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 328.9% indicates that its high dividend yield might not be sustainable for the long-term.

Uwm Holdings (NYSE:UWMC) has an annual dividend yield of 7.1%, which is 2 percentage points higher than the mortgage industry average of 5.1%. Uwm Holdings's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Uwm Holdings's dividend has not shown consistent growth over the last 10 years.

Uwm Holdings's dividend payout ratio of 1,000% indicates that its high dividend yield might not be sustainable for the long-term.

Rocket Companies (NYSE:RKT) has an annual dividend yield of 4.8%, which is the same as the mortgage industry average of 5.1%. Rocket Companies's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Rocket Companies's dividend has not shown consistent growth over the last 10 years.

Rocket Companies's dividend payout ratio of 4,000% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage stocks were up 0.73% in the last day, and down -5.52% over the last week. Rocket Companies was the among the top gainers in the mortgage finance industry, gaining 4.52% yesterday.

Rocket shares are trading higher after the company reported better-than-expected Q3 financial results and issued Q4 sales guidance above estimates.

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:

Encore Capital Group (NASDAQ:ECPG) 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.

Encore Capital Group has a valuation score of 0, which is -27 points higher than the mortgage industry average of 27. It passed 0 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates ECPG a Valuation Rating of "B".

Encore Capital Group's stock has dropped -8.98% in the past year. It has underperformed other stocks in the mortgage industry by -19 percentage points.

Onity Group (NYSE:ONIT) 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.

Onity Group has a valuation score of 57, which is 30 points higher than the mortgage industry average of 27. It passed 4 out of 7 valuation due diligence checks.

Onity Group's stock has gained 26.08% in the past year. It has overperformed other stocks in the mortgage industry by 16 percentage points.

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

Velocity Financial has a valuation score of 29, which is 2 points higher than the mortgage industry average of 27. It passed 2 out of 7 valuation due diligence checks.

Velocity Financial's stock has dropped -3.07% in the past year. It has underperformed other stocks in the mortgage industry by -13 percentage points.

33.33% of mortgage stocks rated by analysts are a strong buy right now. On average, analysts expect mortgage stocks to rise by 17.39% over the next year.

0% of mortgage stocks have a Zen Rating of A (Strong Buy), 23.08% of mortgage stocks are rated B (Buy), 53.85% are rated C (Hold), 23.08% are rated D (Sell), and 0% are rated F (Strong Sell).