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.

Industry: Mortgage Finance
D
Mortgages is Zen Rated D and is the 116th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Zen Rating
Sentiment
Market Cap
Shares
Institutional %
Insider %
Net Insider (L12M)
Net Insider (L3M)
ONIT
ONITY GROUP INC
$313.69M8,008,5152.75%97.25%Net SellingNet Selling
ECPG
ENCORE CAPITAL GROUP INC
$955.22M23,349,20034.45%65.55%Net BuyingNet Buying
GHI
GREYSTONE HOUSING IMPACT INVESTORS LP
$266.73M23,397,4379.14%26.37%Net Buying
SNFCA
SECURITY NATIONAL FINANCIAL CORP
$261.95M24,689,07340.57%28.84%Net BuyingNet Buying
VEL
VELOCITY FINANCIAL INC
$602.47M36,491,52040.67%59.33%Net BuyingNet Buying
PFSI
PENNYMAC FINANCIAL SERVICES INC
$5.10B51,663,58634.29%65.71%Net SellingNet Selling
LDI
LOANDEPOT INC
$399.19M329,910,5349.61%51.52%Net SellingNet Selling
BETR
BETTER HOME & FINANCE HOLDING CO
$203.74M15,204,4853.94%96.06%Net Selling
RKT
ROCKET COMPANIES INC
$25.20B2,000,152,1155.44%0.95%Net SellingNet Selling
UWMC
UWM HOLDINGS CORP
$6.59B1,599,201,0615.36%0.07%Net SellingNet Buying
WD
WALKER & DUNLOP INC
$2.52B33,981,53434.33%65.67%Net SellingNet Buying
GHLD
GUILD HOLDINGS CO
$752.74M62,210,1769.40%21.65%Net SellingNet Selling
IOR
INCOME OPPORTUNITY REALTY INVESTORS INC
$74.78M4,066,1780.03%84.41%Net BuyingNet Buying
PAPL
PINEAPPLE FINANCIAL INC
$833.51k9,692,0201.57%29.08%Net Buying
COOP
MR COOPER GROUP INC
$8.24B63,985,38992.10%3.77%Net SellingNet Selling
CNF
CNFINANCE HOLDINGS LTD
$48.69M1,371,643,2400.43%0.00%

Mortgage Stocks FAQ

What are the best mortgage stocks to buy right now in May 2025?

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:

1. Onity Group (NYSE:ONIT)


Onity Group (NYSE:ONIT) is the #1 top mortgage stock out of 16 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: B, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Onity Group (NYSE:ONIT) has a Due Diligence Score of 37, which is 10 points higher than the mortgage industry average of 27.

ONIT passed 12 out of 33 due diligence checks and has average fundamentals. Onity Group has seen its stock return 54.94% over the past year, overperforming other mortgage stocks by 51 percentage points.

Onity Group has an average 1 year price target of $50.00, an upside of 27.65% from Onity Group's current stock price of $39.17.

Onity Group stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Onity Group, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Encore Capital Group (NASDAQ:ECPG)


Encore Capital Group (NASDAQ:ECPG) is the #2 top mortgage stock out of 16 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: C, Growth: B, Momentum: C, Sentiment: B, Safety: D, Financials: C, and AI: C.

Encore Capital Group (NASDAQ:ECPG) has a Due Diligence Score of 11, which is -16 points lower than the mortgage industry average of 27. Although this number is below the industry average, our proven quant model rates ECPG as a "B".

ECPG passed 4 out of 33 due diligence checks and has weak fundamentals. Encore Capital Group has seen its stock lose -12.44% over the past year, underperforming other mortgage stocks by -16 percentage points.

Encore Capital Group has an average 1 year price target of $61.50, an upside of 50.33% from Encore Capital Group's current stock price of $40.91.

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.

3. Greystone Housing Impact Investors (NYSE:GHI)


Greystone Housing Impact Investors (NYSE:GHI) is the #3 top mortgage stock out of 16 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% 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: C, Financials: C, and AI: C.

Greystone Housing Impact Investors (NYSE:GHI) has a Due Diligence Score of 38, which is 11 points higher than the mortgage industry average of 27.

GHI passed 14 out of 38 due diligence checks and has average fundamentals. Greystone Housing Impact Investors has seen its stock lose -26.4% over the past year, underperforming other mortgage stocks by -30 percentage points.

Greystone Housing Impact Investors has an average 1 year price target of $15.50, an upside of 35.96% from Greystone Housing Impact Investors's current stock price of $11.40.

Greystone Housing Impact Investors stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Greystone Housing Impact Investors, 33.33% have issued a Strong Buy rating, 66.67% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the mortgage stocks with highest dividends?

Out of 6 mortgage stocks that have issued dividends in the past year, the 3 mortgage stocks with the highest dividend yields are:

1. Greystone Housing Impact Investors (NYSE:GHI)


Greystone Housing Impact Investors (NYSE:GHI) has an annual dividend yield of 9.74%, which is 5 percentage points higher than the mortgage industry average of 4.72%. 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 328.9% indicates that its high dividend yield might not be sustainable for the long-term.

2. Rocket Companies (NYSE:RKT)


Rocket Companies (NYSE:RKT) has an annual dividend yield of 6.35%, which is 2 percentage points higher than the mortgage industry average of 4.72%. 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.

3. Uwm Holdings (NYSE:UWMC)


Uwm Holdings (NYSE:UWMC) has an annual dividend yield of 4.85%, which is the same as the mortgage industry average of 4.72%. 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.

Why are mortgage stocks down?

Mortgage stocks were down -0.46% in the last day, and up 5.78% over the last week. Pineapple Financial was the among the top losers in the mortgage finance industry, dropping -28.33% yesterday.

Pineapple Financial shares are trading lower after the company denied false claims regarding a reverse stock split.

What are the most undervalued mortgage stocks?

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:

1. Onity Group (NYSE:ONIT)


Onity Group (NYSE:ONIT) 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.

Onity Group has a valuation score of 57, which is 24 points higher than the mortgage industry average of 33. It passed 4 out of 7 valuation due diligence checks.

Onity Group's stock has gained 54.94% in the past year. It has overperformed other stocks in the mortgage industry by 51 percentage points.

2. Encore Capital Group (NASDAQ:ECPG)


Encore Capital Group (NASDAQ:ECPG) is the second 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.

Encore Capital Group has a valuation score of 0, which is -33 points higher than the mortgage industry average of 33. It passed 0 out of 7 valuation due diligence checks.

Encore Capital Group's stock has dropped -12.44% in the past year. It has underperformed other stocks in the mortgage industry by -16 percentage points.

3. Velocity Financial (NYSE:VEL)


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 -4 points higher than the mortgage industry average of 33. It passed 2 out of 7 valuation due diligence checks.

Velocity Financial's stock has dropped -8.33% in the past year. It has underperformed other stocks in the mortgage industry by -12 percentage points.

Are mortgage stocks a good buy now?

41.67% of mortgage stocks rated by analysts are a buy right now. On average, analysts expect mortgage stocks to rise by 23.03% over the next year.

0% of mortgage stocks have a Zen Rating of A (Strong Buy), 18.18% of mortgage stocks are rated B (Buy), 45.45% are rated C (Hold), 18.18% are rated D (Sell), and 18.18% are rated F (Strong Sell).

What is the average p/e ratio of the mortgage finance industry?

The average P/E ratio of the mortgage finance industry is 231.67x.
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Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.