Last year was the worst of all possible worlds for the mortgage sector. The Federal Reserve began hiking rates in order to rein in inflation, which wreaked havoc on the mortgage market. Mortgage rates rose rapidly, which all but eliminated refinancing activity and drove several large mortgage originators out of the business. Mortgage-backed securities were under pressure all year, which caused losses for mortgage real estate investment trusts (REITs) and forced many to cut their dividends.

Now that the worst appears to be over, investors are taking a fresh look at the mortgage REIT sector, especially AGNC Investment (NASDAQ: AGNC). Is it a buy?  

The Federal Reserve building in Washington, D.C. Image source: Getty Images.

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Source Fool.com