3 mortgage and related services stocks to watch as mortgage rates rise


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The Zack Mortgages and related services the industry has felt the heat of the ebb tide of mortgage deals. To add to the woes, weak housing supply and a sharp increase in house prices are likely to limit assembly volumes, while tighter margins compound challenges for industry players. Regulatory risks such as any change of supervision or the existence of Freddie mac FMCC could limit the origination capacity of industry players and reduce revenues from loan origination and management fees.

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Nonetheless, expectations of increased demand for housing due to an improving labor market and growing consumer spending should help mortgage-related stocks generate higher returns in the near future. This, combined with the diversity of the portfolio and technological improvements, should Walker & Dunlop, Inc. DEO, Ellington Financial LLC EFC and Velocity Financial, Inc. LEVEL afloat.

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Walker & Dunlop, Inc. (WD): Free Stock Analysis Report

Freddie Mac (FMCC): Free Stock Analysis Report

Ellington Financial Inc. (EFC): Free Stock Analysis Report

Velocity Financial, Inc. (VEL): Free Stock Analysis Report

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