Mortgage REITs were thoroughly devastated over the last month. It's been a brutal period for them. Book values are down and price-to-book value ratios plunged. There are a few other interesting bits investors need to know though.
For instance, the mortgage REITs focused on "Agency" securities (guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae) saw a significant recovery in book value during the last two weeks. After an extremely rough month, book values began improving.
The biggest concern for the sector is exposure to non-agency MBS. More specifically, it's the reliance on