A fear of higher interest rates, compression of mortgage-backed securities valuations, and a lack of new mortgage-backed securities supply are all working against the mortgage real estate investment trust sector, 24/7 Wall St. reports.

While we have not exactly seen another broad sector call, we have seen two cautious calls from analyst Douglas Harter at Credit Suisse (CS) in shares of Annaly Capital Management (NLY) and Javelin Mortgage Investment Corp (JMI).