MFA Financial (NYSE:MFA) reported a negative total economic return for the first quarter of 2026 as higher rates, wider mortgage spreads and market volatility weighed on book value, while management pointed to portfolio growth, securitization activity and cost reductions as key priorities for the year.
Chief Executive Officer Craig Knutson said the quarter unfolded in two distinct market environments. Fixed income markets began the year with strong investor demand and low volatility, continuing the trend from the second half of 2025. He said mortgages performed well early in the quarter, helped by a directive for the government-sponsored enterprises to purchase $200 billion of agency mortgage-backed securities.
