Sectors & IndustriesReal EstateREIT - Mortgage

Best Mortgage REIT Stocks to Buy Now (2025)

Top mortgage reit 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 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:

Apollo Commercial Real Estate Finance (NYSE:ARI) is the #1 top mortgage reit stock out of 39 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 Apollo Commercial Real Estate Finance (NYSE:ARI) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Apollo Commercial Real Estate Finance (NYSE:ARI) has a Due Diligence Score of 25, which is -1 points lower than the mortgage reit industry average of 26. Although this number is below the industry average, our proven quant model rates ARI as a "B".

ARI passed 10 out of 38 due diligence checks and has weak fundamentals. Apollo Commercial Real Estate Finance has seen its stock return 6.96% over the past year, overperforming other mortgage reit stocks by 18 percentage points.

Apollo Commercial Real Estate Finance has an average 1 year price target of $10.83, an upside of 10.2% from Apollo Commercial Real Estate Finance's current stock price of $9.83.

Apollo Commercial Real Estate Finance stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Apollo Commercial Real Estate Finance, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Adamas Trust (NASDAQ:ADAM) is the #2 top mortgage reit stock out of 39 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 Adamas Trust (NASDAQ:ADAM) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: D, and AI: C.

Adamas Trust (NASDAQ:ADAM) has a Due Diligence Score of 34, which is 8 points higher than the mortgage reit industry average of 26.

ADAM passed 12 out of 38 due diligence checks and has average fundamentals. Adamas Trust has seen its stock return 18.85% over the past year, overperforming other mortgage reit stocks by 30 percentage points.

Adamas Trust has an average 1 year price target of $7.38, an upside of 5.36% from Adamas Trust's current stock price of $7.00.

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.

Cherry Hill Mortgage Investment (NYSE:CHMI) is the #3 top mortgage reit stock out of 39 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 Cherry Hill Mortgage Investment (NYSE:CHMI) is: Value: C, Growth: A, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: D.

Cherry Hill Mortgage Investment (NYSE:CHMI) has a Due Diligence Score of 13, which is -13 points lower than the mortgage reit industry average of 26.

CHMI passed 4 out of 38 due diligence checks and has weak fundamentals. Cherry Hill Mortgage Investment has seen its stock lose -26.63% over the past year, underperforming other mortgage reit stocks by -16 percentage points.

Cherry Hill Mortgage Investment has an average 1 year price target of $2.75, an upside of 16.03% from Cherry Hill Mortgage Investment's current stock price of $2.37.

Cherry Hill Mortgage Investment stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Cherry Hill Mortgage Investment, 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.

Out of 34 mortgage reit stocks that have issued dividends in the past year, the 3 mortgage reit stocks with the highest dividend yields are:

Lument Finance Trust (NYSE:LFT) has an annual dividend yield of 23.03%, which is 11 percentage points higher than the mortgage reit industry average of 11.71%. Lument Finance Trust's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Lument Finance Trust's dividend has not shown consistent growth over the last 10 years.

Lument Finance Trust's dividend payout ratio of 195.2% indicates that its high dividend yield might not be sustainable for the long-term.

Sachem Capital (NYSEMKT:SACH) has an annual dividend yield of 18.87%, which is 7 percentage points higher than the mortgage reit industry average of 11.71%. Sachem Capital's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Sachem Capital's dividend has not shown consistent growth over the last 10 years.

Sachem Capital's dividend payout ratio of -16.7% indicates that its high dividend yield might not be sustainable for the long-term.

Invesco Mortgage Capital (NYSE:IVR) has an annual dividend yield of 18.28%, which is 7 percentage points higher than the mortgage reit industry average of 11.71%. Invesco Mortgage Capital's dividend payout is not stable, having dropped more than 10% four 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 302.1% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage reit stocks were up 0.51% in the last day, and up 0.42% over the last week. Ares Commercial Real Estate was the among the top gainers in the reit - mortgage industry, gaining 12.69% yesterday.

Ares Commercial Real Estate shares are trading higher after the company reported better-than-expected Q3 financial results.

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:

Angel Oak Mortgage Reit (NYSE:AOMR) 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.

Angel Oak Mortgage Reit has a valuation score of 29, which is -5 points higher than the mortgage reit industry average of 34. It passed 2 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates AOMR a Valuation Rating of "B".

Angel Oak Mortgage Reit's stock has dropped -5.35% in the past year. It has overperformed other stocks in the mortgage reit industry by 5 percentage points.

Rithm Capital (NYSE:RITM) 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.

Rithm Capital has a valuation score of 71, which is 37 points higher than the mortgage reit industry average of 34. It passed 5 out of 7 valuation due diligence checks.

Rithm Capital's stock has gained 3.37% in the past year. It has overperformed other stocks in the mortgage reit industry by 14 percentage points.

Invesco Mortgage Capital (NYSE:IVR) 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.

Invesco Mortgage Capital has a valuation score of 57, which is 23 points higher than the mortgage reit industry average of 34. It passed 4 out of 7 valuation due diligence checks.

Invesco Mortgage Capital's stock has dropped -5.82% in the past year. It has overperformed other stocks in the mortgage reit industry by 5 percentage points.

42.86% of mortgage reit stocks rated by analysts are a buy right now. On average, analysts expect mortgage reit stocks to rise by 12.71% over the next year.

0% of mortgage reit stocks have a Zen Rating of A (Strong Buy), 2.78% of mortgage reit stocks are rated B (Buy), 80.56% are rated C (Hold), 11.11% are rated D (Sell), and 5.56% are rated F (Strong Sell).