Now we take time to consider the impact of rapidly rising mortgage rates on MBS values and apparently wider spreads as it relates to Mreits book values, profitability and resulting dividend outlook? Looks like this trend is starting and triggered by the Fed announced minutes. All in all, it seems to be driving Mreit share prices upward.
we'll be back to record low rates in a month or so when the debt ceiling crisis is front and center. In between we'll be getting earnings reports that will drive growth expectations following the debt deal.
Debt Ceiling has been raised 91 times since 1940 and will be again. Always messy and always eventually done. Earnings reports for fourth quarter may shed some light however the first quarter earnings is what the PPS will be based on right now. The Mreits will need SPO's to purchase higher rate MBS.