With interest rates expected to continue their shift upward, people investing in mortgage REITs need to be active in their management to outperform. Here are a few things to know about mortgage REITs:
1️⃣ Avoid REITs focused on single-family mortgages. Instead, evaluate investing in other real estate areas, such as in health care or industrial, and seek a mortgage REIT that caters to real estate sectors that are trending positively.
2️⃣ Not all mortgage REITs are created equal. Some mortgage REITs invest in one type of mortgage, while others may invest in various types of mortgage assets as well as other real estate related securities, such as the AG Mortgage Investment Trust (MITT), which is trading at about $18.10, up from about $16.77 a year ago.
3️⃣ Watch Fed rate hikes. “Since 2015, the Federal Reserve has raised rates seven times and each increase was 25 basis points.
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