Sectors & IndustriesFinancial ServicesMortgage Finance

Best Mortgage Stocks to Buy Now (2024)

Top mortgage stocks in 2024 ranked by overall Zen Score. See the best mortgage stocks to buy now, according to analyst forecasts for the mortgage finance industry.

According to Zen Score, the 3 best mortgage finance stocks to buy right now are:

Walker & Dunlop (NYSE:WD) is the top mortgage stock with a Zen Score of 45, which is 27 points higher than the mortgage industry average of 18. It passed 16 out of 38 due diligence checks and has strong fundamentals. Walker & Dunlop has seen its stock return 38.39% over the past year, overperforming other mortgage stocks by 25 percentage points.

Walker & Dunlop has an average 1 year price target of $96.67, an upside of 2.89% from Walker & Dunlop's current stock price of $93.95.

Walker & Dunlop stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Walker & Dunlop, 0% have issued a Strong Buy rating, 33.33% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Velocity Financial (NYSE:VEL) is the second best mortgage stock with a Zen Score of 43, which is 25 points higher than the mortgage industry average of 18. It passed 14 out of 33 due diligence checks and has strong fundamentals. Velocity Financial has seen its stock return 91.72% over the past year, overperforming other mortgage stocks by 79 percentage points.

Velocity Financial has an average 1 year price target of $18.30, an upside of 6.77% from Velocity Financial's current stock price of $17.14.

Velocity Financial stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Velocity Financial, 40% have issued a Strong Buy rating, 40% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Greystone Housing Impact Investors (NYSE:GHI) is the third best mortgage stock with a Zen Score of 30, which is 12 points higher than the mortgage industry average of 18. It passed 10 out of 38 due diligence checks and has average fundamentals. Greystone Housing Impact Investors has seen its stock lose -11.46% over the past year, underperforming other mortgage stocks by -25 percentage points.

Greystone Housing Impact Investors has an average 1 year price target of $20.00, an upside of 35.5% from Greystone Housing Impact Investors's current stock price of $14.76.

Greystone Housing Impact Investors stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Greystone Housing Impact Investors, 100% have issued a Strong Buy rating, 0% 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 10.47%, which is 6 percentage points higher than the mortgage industry average of 4.32%. Greystone Housing Impact Investors's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Greystone Housing Impact Investors's dividend has shown consistent growth over the last 10 years.

Greystone Housing Impact Investors's dividend payout ratio of 74.9% indicates that its high dividend yield is sustainable for the long-term.

Guild Holdings Co (NYSE:GHLD) has an annual dividend yield of 3.69%, which is -1 percentage points lower than the mortgage industry average of 4.32%.

Guild Holdings Co's dividend payout ratio of -78.1% indicates that its dividend yield might not be sustainable for the long-term.

Walker & Dunlop (NYSE:WD) has an annual dividend yield of 2.7%, which is -2 percentage points lower than the mortgage industry average of 4.32%. 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 78.7% indicates that its dividend yield is sustainable for the long-term.

Mortgage stocks were up 1.67% in the last day, and up 4.63% over the last week.

We couldn't find a catalyst for why mortgage stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued mortgage stocks right now are:

Mr Cooper Group (NASDAQ:COOP) is the most undervalued mortgage stock based on WallStreetZen's Valuation Score. Mr Cooper Group has a valuation score of 71, which is 45 points higher than the mortgage industry average of 26. It passed 5 out of 7 valuation due diligence checks.

Mr Cooper Group's stock has gained 74.45% in the past year. It has overperformed other stocks in the mortgage industry by 61 percentage points.

Security National Financial (NASDAQ:SNFCA) is the second most undervalued mortgage stock based on WallStreetZen's Valuation Score. Security National Financial has a valuation score of 57, which is 31 points higher than the mortgage industry average of 26. It passed 4 out of 7 valuation due diligence checks.

Security National Financial's stock has dropped -5.14% in the past year. It has underperformed other stocks in the mortgage industry by -18 percentage points.

Velocity Financial (NYSE:VEL) is the third most undervalued mortgage stock based on WallStreetZen's Valuation Score. Velocity Financial has a valuation score of 57, which is 31 points higher than the mortgage industry average of 26. It passed 4 out of 7 valuation due diligence checks.

Velocity Financial's stock has gained 91.72% in the past year. It has overperformed other stocks in the mortgage industry by 79 percentage points.