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 22, which is -5 points lower than the mortgage reit industry average of 27. Although this number is below the industry average, our proven quant model rates ARI as a "B".

ARI passed 9 out of 38 due diligence checks and has weak fundamentals. Apollo Commercial Real Estate Finance has seen its stock return 8.45% over the past year, overperforming other mortgage reit stocks by 19 percentage points.

Apollo Commercial Real Estate Finance has an average 1 year price target of $10.83, an upside of 9.65% from Apollo Commercial Real Estate Finance's current stock price of $9.88.

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 7 points higher than the mortgage reit industry average of 27.

ADAM passed 12 out of 38 due diligence checks and has average fundamentals. Adamas Trust has seen its stock return 20.78% over the past year, overperforming other mortgage reit stocks by 31 percentage points.

Adamas Trust has an average 1 year price target of $7.38, an upside of 3.15% from Adamas Trust's current stock price of $7.15.

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.

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) 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 Chicago Atlantic Real Estate Finance (NASDAQ:REFI) is: Value: B, Growth: F, Momentum: C, Sentiment: C, Safety: D, Financials: B, and AI: C.

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) has a Due Diligence Score of 35, which is 8 points higher than the mortgage reit industry average of 27.

REFI passed 13 out of 38 due diligence checks and has average fundamentals. Chicago Atlantic Real Estate Finance has seen its stock lose -18.6% over the past year, underperforming other mortgage reit stocks by -9 percentage points.

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 23.49%, which is 12 percentage points higher than the mortgage reit industry average of 11.57%. 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 350% 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 19.89%, which is 8 percentage points higher than the mortgage reit industry average of 11.57%. Orchid Island Capital's dividend payout is not stable, having dropped more than 10% eight 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 313% indicates that its high dividend yield might not be sustainable for the long-term.

Sachem Capital (NYSEMKT:SACH) has an annual dividend yield of 19.05%, which is 7 percentage points higher than the mortgage reit industry average of 11.57%. 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 -26% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage reit stocks were up 0.19% in the last day, and down -1.81% over the last week.

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

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:

Rithm Capital (NYSE:RITM) 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.

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

Rithm Capital's stock has gained 3.15% in the past year. It has overperformed other stocks in the mortgage reit industry by 13 percentage points.

Invesco Mortgage Capital (NYSE:IVR) 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.

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

Invesco Mortgage Capital's stock has dropped -7.08% in the past year. It has overperformed other stocks in the mortgage reit industry by 3 percentage points.

Nexpoint Real Estate Finance (NYSE:NREF) 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.

Nexpoint Real Estate Finance has a valuation score of 43, which is 10 points higher than the mortgage reit industry average of 33. It passed 3 out of 7 valuation due diligence checks.

Nexpoint Real Estate Finance's stock has dropped -15.38% in the past year. It has underperformed 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 14.77% 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), 13.89% are rated D (Sell), and 2.78% are rated F (Strong Sell).