mortgage REITs

Mortgage REITs (Real Estate Investment Trusts) are companies that invest in real estate loans rather than physical properties. They earn income by lending money to property owners or purchasing mortgage-backed securities, then collecting interest payments. These REITs distribute most of their earnings as dividends to shareholders. Because their income depends on interest rates and the health of the housing market, they can be more sensitive to economic changes. Mortgage REITs offer a way to invest in real estate income streams without buying physical properties, but they also carry higher risks and volatility compared to traditional real estate investments.