Fed's 50 basis point interest rate cut could kickstart bullish cycle for mortgage REITs

From Investing: 2024-09-22 05:00:00

The Federal Reserve’s interest rate cut of 50 basis points may kickstart a bullish cycle for mortgage REITs, as per B. Riley. Declining rates benefit mREITs by lowering funding costs and enhancing earnings potential. Short-term debt refinancing at lower rates allows for improved profitability and higher leverage. Residential, hybrid, and commercial mREITs are all expected to benefit from the rate cuts, with mREITs poised for further gains in a sustained bullish cycle.



Read more at Investing: Did the Fed just start the next bullish cycle for mortgage REITs? By Investing.com