In this video, Motley Fool financial analyst Matt Koppenheffer takes a look at some new numbers from the Mortgage Bankers Association regarding mortgage application rates and refinancing rates as a percentage of mortgage activity.

One of the biggest risks facing mortgage REITs is early payback of the principal on a mortgage, which means the loss of interest paid over time. A decrease in refinancing rates goes hand in hand with a decrease in early payback rates. And as the MBA has reported exactly that, albeit a small decrease, this is good news for mortgage REIT investors. Matt gives further detail on why the MBA's report was good news and which companies might be affected.

Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.