2022 was a challenging year for the mortgage space. Mortgage originators saw volumes collapse, and big participants folded or got out of the business altogether. As a result, mortgage real estate investment trusts (mREITs) struggled as mortgage-backed securities underperformed Treasuries. By the end of the year, mortgage REITs were reporting big declines in book value per share over the previous 12 months.

2023 has seen interest rates start to level off and other economic pressures ease a bit in the mortgage space. Is the worst over for PennyMac Mortgage Investment Trust (NYSE: PMT), one of the big mortgage REITs? The answer is "it depends." Let me explain.

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Source Fool.com