Orc stock price forecast investors are watching dividend yields

Investors are watching dividend yields closely, as Orchid Island Capital remains heavily influenced by mortgage REIT sector dynamics and interest rate shifts from the Federal Reserve. Though the Federal Reserve has lowered the interest rates by 100 basis points in 2024, it has kept rates steady since then due to macroeconomic uncertainty. Despite this, mortgage rates have slightly declined. Per a Freddie Mac report, the average rate on a 30-year fixed-rate mortgage was 6.77% as of June 26, 2025, down from 6.81% in the previous week. The put contract at the $1.50 strike price has a current bid of 40 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $1.50, but will also collect the premium, putting the cost basis of the shares at $1.10 (before broker commissions). To an investor already interested in purchasing shares of OPEN, that could represent an attractive alternative to paying $1.71/share today. Recent trading patterns in ORC stock point to a tightly bound consolidation, with the forecast indicating a potential breakout if 10-year Treasury yields stabilize. Investors tracking the mortgage-backed securities space should note a slight narrowing of spreads, which favors mREIT valuations.