Housing mortgage: Key market research findings
- Growing opportunity for buyers and investors
- Increase in the demand of building manufacturers
Technavio has released a new market research report on the global housing mortgage market, which is expected to grow at a CAGR of around 4% between 2016 and 2020. The global housing real estate market is gaining from an improving business environment, low inflation rates, and surging consumer confidence. Moreover, the declining housing mortgage rates has attracted several refinancing options for loans with low monthly payments. Government and policyholders are expected to monitor banks to improve borrowers’ repayment capacity and improve lending standards over the forecast period. APAC is the leading region in the residential loan market, occupying around 44% of the overall market share. Much of the region’s growth is due to the introduction of a massive monetary stimulus program, which is aimed at stabilizing inflation and attracting large flows of capital.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Of late, the investors in the age groups between 25 and 34 years are assisting the growth of the housing industry. Governments across the globe are focusing on raising credit scores and reducing student loan delinquency for the forecast period. On the other hand sustained job growth, changes in interest rates, and the expected easing of credit standards should help buyers and investors in the home loan market during the forecast period,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research
Due to intense material storage and increasing scarcity of skilled labor in the housing mortgage market, the policymakers have been compelled to design measures to ensure the easy availability of cash for builders. Additionally, governments have also started to devise mechanisms like LTV and DTI to encourage the construction of houses in different geographies. In this market, the real estate and housing mortgage managers, the investment community, and developers will need to collaborate with governments to manage and mitigate risks in schemes that might otherwise appear uneconomic.
The key vendors in the global housing mortgage market are Bank of China, China Construction Bank, HSBC, and Wells Fargo. The competitive dynamics of this market has changed drastically over the last ten years. Consequently, to remain competitive in this market, the mortgage originators appointed mobile lenders to reduce branch network costs. In addition, the mortgage lenders in this market competed for new businesses through product innovations like home-equity loans, which provide a line of credit against residential property.
A more detailed analysis is available in the Technavio report, Global Housing Mortgage Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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