Yesterday, the Federal Reserve released the minutes from its latest open market committee meeting, and in this video, Motley Fool financial analyst Matt Koppenheffer gives Annaly Capital (NYSE: NLY) investors several key takeaways from those minutes. He tells us that mortgage refinance rates are still particularly high, which means that rates of homeowners paying back their mortgages early is high, too, which damages the value of Annaly's mortgage-backed securities through the loss of interest payments. Matt also tells us that the housing market is continuing to improve, and perhaps most importantly, the Fed continues to buy large numbers of mortgage-backed securities each month. In the video, Matt explains the profound effect these key points have on mortgage REITs such as Annaly.
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Here's What the Fed Minutes Mean for Annaly
The good news and the bad news for Annaly Capital investors.
Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management. 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.
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