Why These High-Yield Mortgage REITs Soared in June

Shares of mortgage real estate investment trusts (REITs), including Two Harbors Investment Corporation (NYSE: TWO), Chimera Investment Corporation (NYSE: CIM), and MFA Financial (NYSE: MFA), rose by double-digit percentages in June, according to data provided by S&P Global Market Intelligence. Although they all handily beat the S&P 500's 1.8% increase, Two Harbors' and Chimera's gains of 11.5% and 15.6%, respectively, were dwarfed by MFA's massive move, up 47.3% for the month. Most mREITs borrow huge amounts of low-interest money from lenders to buy higher-interest mortgages and mortgage-backed securities.