Mortgage REITs have fallen sharply on concerns that positive economic data would trigger the Federal Reserve to slow down its $85 billion in monthly bond purchases. On Friday, the Labor Department reported the U.S. added 195,000 jobs in June sending the yield on 10-year Treasury notes to a high of 2.719 percent, the highest since August 2011. "Mortgage REITs are very susceptible to the risk of rising short-term rates. Until recently, mortgage REITs have benefited from the Fed’s easy money policy. The Fed’s historically low near-zero interest rate makes financing cheap, allowing mortgage REITs to use leverage to provide an attractive yield. However, because these firms are so extensively leveraged, they are very susceptible to interest-rate fluctuations," said Morningstar ETF analyst Abby Woodham.
Capstead Mortgage Corporation (NYSE: CMO) shares traded in the range of $11.80 to $11.99 Thursday before settling to close at $11.82, a decrease of 0.17 percent. The stock appears to be facing resistance at the $11.89 and $12.05 levels with some support at $11.76. Shares of Capstead Mortgage have fallen approximately 10.0 percent over the past three months.
More information on Capstead Mortgage and access to the free equity report can be found at:
Dynex Capital Inc. (NYSE: DX) shares traded in the range of $8.35 to $8.46 Thursday before settling to close at $8.44, an increase of 0.96 percent. The stock appears to be facing some resistance at the $8.59, $9.59 and $9.73 levels. Shares of Dynex Capital have fallen approximately 23.0 percent over the past three months.
More information on Dynex Capital and access to the free equity report can be found at:
New York Mortgage Trust, Inc. (NASDAQ: NYMT) shares traded in the range of $6.08 to $6.22 Thursday before settling to close at $6.14, an increase of 1.49 percent. The stock appears to be facing resistance at the $6.41 and $6.60 levels with some support at $6.07. Shares of New York Mortgage Trust have fallen approximately 15.0 percent over the past three months.
More information on New York Mortgage Trust and access to the free equity report can be found at:
Starwood Property Trust, Inc. (NYSE: STWD) shares traded in the range of $25.44 to $25.83 Thursday before settling to close at $25.47, a decrease of 0.59 percent. The stock appears to be facing resistance at the $25.65 and $26.61 levels with some support at $25.12. Shares of Starwood Property Trust have fallen approximately 10.0 percent over the past three months.
More information on Starwood Property Trust and access to the free equity report can be found at:
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