American Capital Agency Corp. (AGNC), American Capital Mortgage Investment Crp (MTGE) & mREITs, mREITs Everywhere!

If the economic winds blow in another direction, could the mortgage REITs suffer another severe depression? That could happen, of course, but I don’t think it will. I think there will be a moderation in the sector, with the extreme pendulum swings winding down in the absence of abysmal earnings reports, as well as the realization that unemployment is nowhere near the magic number of 6.5% that triggers a QE3 halt.

The mREIT sector will likely settle out of their volatility soon, as things begin to get back to normal. Meanwhile, Gavin James just took the opportunity to increase his stake in Western Asset Mortgage Capital Corp (NYSE:WMC) by nearly 13%. A show of faith? I’d say so.

The article Finally, Mortgage REITs Catch a Break originally appeared on Fool.com.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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