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
Market Size Value in US$ 4.51 trillion in 2023 Market Size Value by US$ 21.46 trillion by 2031 Growth rate CAGR of 21.5% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Home Mortgage Finance Market: Strategic Insights
| Market Size Value in | US$ 4.51 trillion in 2023 |
| Market Size Value by | US$ 21.46 trillion by 2031 |
| Growth rate | CAGR of 21.5% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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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
Market Report Scope
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.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Source, Interest Rate, and Tenure, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
Personalization and customization to enhance user experience are impacting home mortgage finance, which is anticipated to bring new home mortgage finance market trends in the coming years.
The key players holding majority shares in the global home mortgage finance market are PNB Housing Finance Limited; Edelweiss Housing Finance Limited; Santander; and Barclays
Government initiative and rapid urbanization are the major factors that propel the global home mortgage finance market.
The global home mortgage finance market is expected to reach US$ 21.4 trillion by 2031.
The global home mortgage finance market was estimated to be US$ 4.51 trillion in 2023 and is expected to grow at a CAGR of 21.5% during the forecast period 2023 - 2031.
- PNB Housing Finance Limited
- Edelweiss Housing Finance Limited
- HDFC Housing Finance
- PenFed
- Ally Financial
- Caliber Home Loans
- Nbkc Bank
- Flagstar
- Santander
- Barclays
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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