Sectors & IndustriesFinancial ServicesMortgage Finance

Best Mortgage Stocks to Buy Now (2025)

Top mortgage 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 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 finance stocks to buy right now are:

Velocity Financial (NYSE:VEL) is the #1 top mortgage stock out of 16 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 Velocity Financial (NYSE:VEL) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Velocity Financial (NYSE:VEL) has a Due Diligence Score of 35, which is 7 points higher than the mortgage industry average of 28.

VEL passed 12 out of 33 due diligence checks and has average fundamentals. Velocity Financial has seen its stock return 2.33% over the past year, overperforming other mortgage stocks by 4 percentage points.

Velocity Financial has an average 1 year price target of $22.00, an upside of 28.28% from Velocity Financial's current stock price of $17.15.

Velocity Financial stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Velocity Financial, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Pennymac Financial Services (NYSE:PFSI) is the #2 top mortgage stock out of 16 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 Pennymac Financial Services (NYSE:PFSI) is: Value: C, Growth: B, Momentum: C, Sentiment: D, Safety: C, Financials: C, and AI: B.

Pennymac Financial Services (NYSE:PFSI) has a Due Diligence Score of 44, which is 16 points higher than the mortgage industry average of 28.

PFSI passed 18 out of 38 due diligence checks and has strong fundamentals. Pennymac Financial Services has seen its stock return 4.16% over the past year, overperforming other mortgage stocks by 6 percentage points.

Pennymac Financial Services has an average 1 year price target of $121.80, an upside of 29.27% from Pennymac Financial Services's current stock price of $94.22.

Pennymac Financial Services stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Pennymac Financial Services, 40% have issued a Strong Buy rating, 40% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Walker & Dunlop (NYSE:WD) is the #3 top mortgage stock out of 16 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 Walker & Dunlop (NYSE:WD) is: Value: C, Growth: C, Momentum: C, Sentiment: D, Safety: C, Financials: B, and AI: B.

Walker & Dunlop (NYSE:WD) has a Due Diligence Score of 42, which is 14 points higher than the mortgage industry average of 28.

WD passed 15 out of 38 due diligence checks and has strong fundamentals. Walker & Dunlop has seen its stock lose -21.96% over the past year, underperforming other mortgage stocks by -20 percentage points.

Walker & Dunlop has an average 1 year price target of $95.00, an upside of 31.85% from Walker & Dunlop's current stock price of $72.05.

Walker & Dunlop stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Walker & Dunlop, 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 6 mortgage stocks that have issued dividends in the past year, the 3 mortgage stocks with the highest dividend yields are:

Greystone Housing Impact Investors (NYSE:GHI) has an annual dividend yield of 9.84%, which is 5 percentage points higher than the mortgage industry average of 4.92%. Greystone Housing Impact Investors's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Greystone Housing Impact Investors's dividend has shown consistent growth over the last 10 years.

Greystone Housing Impact Investors's dividend payout ratio of 194.7% indicates that its high dividend yield might not be sustainable for the long-term.

Rocket Companies (NYSE:RKT) has an annual dividend yield of 6.93%, which is 2 percentage points higher than the mortgage industry average of 4.92%. Rocket Companies's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Rocket Companies's dividend has not shown consistent growth over the last 10 years.

Rocket Companies's dividend payout ratio of 0% indicates that its high dividend yield might not be sustainable for the long-term.

Uwm Holdings (NYSE:UWMC) has an annual dividend yield of 4.54%, which is the same as the mortgage industry average of 4.92%. Uwm Holdings's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Uwm Holdings's dividend has not shown consistent growth over the last 10 years.

Uwm Holdings's dividend payout ratio of 307.7% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage stocks were down -2.47% in the last day, and down -3.5% over the last week.

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

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 stocks right now are:

Onity Group (NYSE:ONIT) is the most undervalued mortgage stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Onity Group has a valuation score of 57, which is 25 points higher than the mortgage industry average of 32. It passed 4 out of 7 valuation due diligence checks.

Onity Group's stock has gained 20.04% in the past year. It has overperformed other stocks in the mortgage industry by 22 percentage points.

Encore Capital Group (NASDAQ:ECPG) is the second most undervalued mortgage stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Encore Capital Group has a valuation score of 0, which is -32 points higher than the mortgage industry average of 32. It passed 0 out of 7 valuation due diligence checks.

Encore Capital Group's stock has dropped -27.49% in the past year. It has underperformed other stocks in the mortgage industry by -26 percentage points.

Velocity Financial (NYSE:VEL) is the third most undervalued mortgage stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Velocity Financial has a valuation score of 29, which is -3 points higher than the mortgage industry average of 32. It passed 2 out of 7 valuation due diligence checks.

Velocity Financial's stock has gained 2.33% in the past year. It has overperformed other stocks in the mortgage industry by 4 percentage points.

41.67% of mortgage stocks rated by analysts are a buy right now. On average, analysts expect mortgage stocks to rise by 37.06% over the next year.

0% of mortgage stocks have a Zen Rating of A (Strong Buy), 0% of mortgage stocks are rated B (Buy), 63.64% are rated C (Hold), 27.27% are rated D (Sell), and 9.09% are rated F (Strong Sell).