Sectors & IndustriesReal EstateREIT - Mortgage

Best Mortgage REIT Stocks to Buy Now (2026)

Top mortgage reit 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 reit 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 reit stocks to buy right now are:

Ares Commercial Real Estate (NYSE:ACRE) is the #1 top mortgage reit stock out of 36 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 Ares Commercial Real Estate (NYSE:ACRE) is: Value: C, Growth: B, Momentum: C, Sentiment: B, Safety: D, Financials: C, and AI: C.

Ares Commercial Real Estate (NYSE:ACRE) has a Due Diligence Score of 16, which is -13 points lower than the mortgage reit industry average of 29.

ACRE passed 5 out of 38 due diligence checks and has weak fundamentals. Ares Commercial Real Estate has seen its stock lose -14.19% over the past year, overperforming other mortgage reit stocks by 12 percentage points.

Ares Commercial Real Estate has an average 1 year price target of $5.33, an upside of 37.8% from Ares Commercial Real Estate's current stock price of $3.87.

Ares Commercial Real Estate stock has a consensus Hold recommendation according to Wall Street analysts. Of the 4 analysts covering Ares Commercial Real Estate, 0% have issued a Strong Buy rating, 25% have issued a Buy, 75% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Redwood Trust (NYSE:RWT) is the #2 top mortgage reit stock out of 36 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 Redwood Trust (NYSE:RWT) is: Value: C, Growth: B, Momentum: D, Sentiment: C, Safety: C, Financials: D, and AI: D.

Redwood Trust (NYSE:RWT) has a Due Diligence Score of 22, which is -7 points lower than the mortgage reit industry average of 29.

RWT passed 8 out of 38 due diligence checks and has weak fundamentals. Redwood Trust has seen its stock lose -38.03% over the past year, underperforming other mortgage reit stocks by -12 percentage points.

Redwood Trust has an average 1 year price target of $5.84, an upside of 60.11% from Redwood Trust's current stock price of $3.65.

Redwood Trust stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Redwood Trust, 50% have issued a Strong Buy rating, 25% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Adamas Trust (NASDAQ:ADAM) is the #3 top mortgage reit stock out of 36 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 Adamas Trust (NASDAQ:ADAM) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Adamas Trust (NASDAQ:ADAM) has a Due Diligence Score of 32, which is 3 points higher than the mortgage reit industry average of 29.

ADAM passed 11 out of 38 due diligence checks and has average fundamentals. Adamas Trust has seen its stock return 11.62% over the past year, overperforming other mortgage reit stocks by 37 percentage points.

Adamas Trust has an average 1 year price target of $9.75, an upside of 25.32% from Adamas Trust's current stock price of $7.78.

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

Out of 33 mortgage reit stocks that have issued dividends in the past year, the 3 mortgage reit stocks with the highest dividend yields are:

Invesco Mortgage Capital (NYSE:IVR) has an annual dividend yield of 30.58%, which is 15 percentage points higher than the mortgage reit industry average of 15.7%. Invesco Mortgage Capital's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Invesco Mortgage Capital's dividend has not shown consistent growth over the last 10 years.

Invesco Mortgage Capital's dividend payout ratio of 102% indicates that its high dividend yield might not be sustainable for the long-term.

Arbor Realty Trust (NYSE:ABR) has an annual dividend yield of 25.34%, which is 10 percentage points higher than the mortgage reit industry average of 15.7%. Arbor Realty Trust's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Arbor Realty Trust's dividend has shown consistent growth over the last 10 years.

Arbor Realty Trust's dividend payout ratio of 1,337.5% indicates that its high dividend yield might not be sustainable for the long-term.

Orchid Island Capital (NYSE:ORC) has an annual dividend yield of 25.24%, which is 10 percentage points higher than the mortgage reit industry average of 15.7%. Orchid Island Capital's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Orchid Island Capital's dividend has not shown consistent growth over the last 10 years.

Orchid Island Capital's dividend payout ratio of 85.2% indicates that its high dividend yield is sustainable for the long-term.

Mortgage reit stocks were down -1.02% in the last day, and down -5.47% over the last week.

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

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 reit stocks right now are:

Orchid Island Capital (NYSE:ORC) is the most undervalued mortgage reit stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Orchid Island Capital has a valuation score of 29, which is -8 points higher than the mortgage reit industry average of 37. It passed 2 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates ORC a Valuation Rating of "B".

Orchid Island Capital's stock has dropped -27.26% in the past year. It has underperformed other stocks in the mortgage reit industry by -2 percentage points.

Annaly Capital Management (NYSE:NLY) is the second most undervalued mortgage reit stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Annaly Capital Management has a valuation score of 29, which is -8 points higher than the mortgage reit industry average of 37. It passed 2 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates NLY a Valuation Rating of "B".

Annaly Capital Management's stock has dropped -9.36% in the past year. It has overperformed other stocks in the mortgage reit industry by 16 percentage points.

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

Ellington Financial has a valuation score of 57, which is 20 points higher than the mortgage reit industry average of 37. It passed 4 out of 7 valuation due diligence checks.

Ellington Financial's stock has dropped -10.7% in the past year. It has overperformed other stocks in the mortgage reit industry by 15 percentage points.

41.94% of mortgage reit stocks rated by analysts are a hold right now. On average, analysts expect mortgage reit stocks to rise by 37.94% over the next year.

0% of mortgage reit stocks have a Zen Rating of A (Strong Buy), 0% of mortgage reit stocks are rated B (Buy), 50% are rated C (Hold), 37.5% are rated D (Sell), and 12.5% are rated F (Strong Sell).