Home Mortgage Finance Market Analysis, Growth, Size by 2031

The Home Mortgage Finance market size is expected to grow from US$ 4.51 trillion in 2023 to US$ 21.46 trillion by 2031; it is anticipated to expand at a CAGR of 21.5% from 2023 to 2031. A mortgage is an arrangement between you and a lender that grants the lender the right to repossess your property if you fail to repay the borrowed funds plus interest. Mortgage loans can be used to purchase a property or to borrow against the value of an existing home. The home mortgage finance market is the industry that provides loans for the purchase of properties. Mortgages are critical to the housing market because the majority of home buyers require financing. Borrowers interact with lenders to acquire financing for their home purchases.

Home Mortgage Finance Market Analysis 

The home mortgage finance market forecast is estimated on the basis of various secondary and primary research findings, such as key company publications, association data, and databases. The mortgage market is critical to the housing industry because it provides individuals with the necessary funds to help them become homeowners. The primary and secondary mortgage markets demonstrate a dynamic system in which borrowers, lenders, and investors work together to enable property transfers. The home mortgage finance market growth is directly impacted by the economic conditions of a country. For instance, a country with weak economic conditions will probably have interest rates as compared to a country with a stable economy. The reserve bank increases the rate of interest to combat inflation and keep prices from running away.

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Home Mortgage Finance Market: Strategic Insights

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Home Mortgage Finance

Industry Overview

• The mortgage industry is constantly adapting to changes in larger financial markets. COVID-19 has been the market's most recent challenge. During the epidemic, mortgage rates fell significantly as the Federal Reserve across many countries implemented a range of measures to make borrowing simpler for consumers. Owing to these low rates, the demand for housing was relatively high during the pandemic and post-pandemic years.
• But the house prices have soared in the following years and have caused the mortgage demand to drop. This signifies the volatility in the market owing to the changing economic conditions of the country or region. For instance, according to a 2024 report by LendingTree, Americans owe US$ 12.14 trillion on their mortgages, which account for 70.2% of total consumer debt in the United States. Even with interest rates exceeding 7.00%, mortgage demand remains strong, and Americans across the country are navigating today's tough housing market. As a result, understanding how Americans handle their mortgages is critical to grasping the health of American finances.

Home Mortgage Finance Market Driver

Government Initiatives to Drive the Home Mortgage Finance Market

• Government policies play an important role in a country’s housing conditions. Favorable government policies for affordable housing drive the home mortgage finance market growth. These policies for affordable housing encourage middle- and working-class citizens to take up housing mortgages.

      For instance,

• In May 2022, President Biden announced a Housing Supply Action Plan to reduce housing costs over time by increasing the supply of decent housing in every town. His plan includes legislative and administrative initiatives to help close America's housing supply gap in five years, beginning with the construction and preservation of hundreds of thousands of affordable housing units over the next three years.

[Source: The White House, Government Website]

• In March 2024, the U.S. Department of the Treasury announced new efforts to increase the supply of housing in the years ahead. These announcements build on the Biden-Harris Administration’s Housing Supply Action Plan to boost the nation’s stock of affordable housing and lower housing costs, including through new actions announced last week.

[Source: U.S. Department of Treasury, Government Website]

• In February 2024, Nirmala Sitharaman, the Finance Minister, launched a new plan during her interim budget 2024 speech. According to the budget address, the Government will launch a scheme to help deserving sections of the middle class living in leased dwellings, slums, chawls, and unauthorized colonies buy or build their own houses

[Source: Ministry of Finance (India), Government Website]

              Such Initiatives are to drive the home mortgage finance market growth.

Home Mortgage Finance

Market Report Segmentation Analysis

• Based on the source, the home mortgage finance market report is segmented into Housing Finance Companies (HFCs) and Banks.
• The housing finance companies (HFCs) segment is expected to hold a significant home mortgage finance market share in 2023. The Housing Finance firm is another type of non-banking financial firm that is primarily involved in the financing of the acquisition or building of houses, including the development of plots of land for the construction of new residences.

Home Mortgage Finance

Market Analysis by Geography

The scope of the Home Mortgage Finance market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant Home Mortgage Finance market share. The major countries in North America, such as the US and Canada, have a stable economy and a very mature market.

Home Mortgage Finance

Home Mortgage Finance Market Regional Insights

The regional trends and factors influencing the Home Mortgage Finance Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Home Mortgage Finance Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Home Mortgage Finance Market Report Scope

Home Mortgage Finance Market Players Density: Understanding Its Impact on Business Dynamics

The Home Mortgage Finance Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Home Mortgage Finance Market are:

1. PNB Housing Finance Limited
2. Edelweiss Housing Finance Limited
3. HDFC Housing Finance
4. PenFed
5. Ally Financial

Disclaimer: The companies listed above are not ranked in any particular order.

The "Home Mortgage Finance Market Analysis" was carried out based on type, technology, application, and geography. In terms of source, the market is segmented into Housing Finance Companies (HFCs) and Banks. Based on technology, the Home Mortgage Finance market is segmented into near-field communication (NFC), quick response (QR) codes, and biometric verification. Based on interest rate, the market is segmented into Fixed Rate and Floating Rate. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Home Mortgage Finance

Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the Home Mortgage Finance market. A few recent key market developments are listed below:

• In November 2023, Barclays announced to cut its mortgage rates for the second time in four days, bringing them below 5% for mortgages with a 10% deposit. The banking behemoth revealed a slew of discounts to its products today, as a global bond buying frenzy has brought gilt yields, which are used to price mortgages down.

[Source: Barclays, Company Website]

• In Feb 2024, Santander stated that the maximum loan-to-value ratio for new construction houses and flats would be raised to 95%, requiring these borrowers to put down a 5% deposit to purchase a home. Customers purchasing a new home with a 95% LTV mortgage can choose from the bank's existing 95% range of five-year fixed-rate packages.

[Source: Santander, Company Website]

Home Mortgage Finance

Market Report Coverage & Deliverables

The market report "Home Mortgage Finance Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
• Detailed company profiles.