Housing Loan Market is Witnessing a Significant Growth from the Home Purchase Segment
The
rising number of nuclear families, ease of affordable housing, and attractive
interest rates are the driving factors for the growth of the global housing
loan market during the projected period.
According to TechSci Research report, “Housing Loan Market – Global Industry Size, Share, Trends,
Competition, Opportunity, and Forecast, 2018-2028F,” the global housing loan
market is propelled to grow as interest rates on housing loan are typically
flexible based on the consumer's feasibility in the loan repayment period.
Higher borrowing limits and low-interest rates for housing loans are also attracting
more customers, which is a significant driver of the market's growth.
An individual can use a
home loan as a type of loan to buy a house. It's also a contract between a
borrower and a lender that essentially allows them to buy a house without paying
the whole amount up front. Instead, they can put down a set amount (typically
between 3% and 20% of the home's price) and make smaller, fixed payments over a
set period, plus interest.
Within United States, after
home prices nationwide reached record highs in recent months, rising mortgage
rates have added much-needed pressure to the housing market. However, as
mortgage rates have started to fall in recent weeks, many economists are
divided on whether home prices will crash or continue to decline slowly through
2023. As buyers were "squeezed out of qualifying for a mortgage," the
overall existing-home sales decreased by 5.9% from September to October 2022,
marking the ninth consecutive month of declining sales.
Artificial intelligence
and machine learning are helpful in the home loan industry and contribute to
greater geographic and socioeconomic diversity in the availability of home
loans. The companies have highlighted how technology has helped reduce mortgage
defaults due to widespread online collection practices implemented shortly
after the COVID-19 pandemic hit. The impact on bank collections was
significant. Therefore, the loan providers took substantial support from
technological advancement, and all the EMI payments collection shifted through National
Automated Clearing House (NACH) mandates or salary deductions, automatically
debited on the due date set by the borrowers. This enables borrowers to pay
conveniently through online portal without visiting the bank. As a result, the
upcoming year's relative has a favorable situation compared to 2020.
Browse over XX market data Figures
spread through XX Pages and an in-depth TOC on the "Housing Loan Market."
The global housing loan
market is segmented based on purpose, end user, , tenure, region, and
competitional landscape. Based on Purpose, the market is further fragmented
into Home Purchase, Refinance, Home Improvement, Construction, and Others
(Re-Sale, etc.). Based on End User, the market is categorized into Employed
Individuals, Professionals, Students, Entrepreneur, and Others (Homemaker,
Unemployed, Retired, etc.). Based on Tenure, the market is segmented into Less
than 5 years, 6-10 years, 11-24 years, and 25-30 years. The market analysis
also studies the regional segmentation, divided among North America, Europe,
Asia-Pacific, Middle East & Africa, and South America.
Home purchase purpose
segment had the highest growth in 2021. This is explained by the need to move
to a larger home as family members grow, encouraging customers to apply for
housing financing to buy new homes. Additionally, the rise in consumer living
standards is a significant factor in the expansion of the housing finance
sector.
Key market players in the global housing
loan market include:
- Bank of America
Corporation
- Charles Schwab & Co.
- Citigroup, Inc.
- Dewan Housing Finance
Corporation Limited
- Goldman Sachs (Marcus)
- HSBC Group
- JPMorgan Chase & Co.
- LIC Housing Finance
Limited
- Morgan Stanley
- Wells Fargo & Co.
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Among the regions, the North America experienced the highest growth in 2022. This
is attributed to an increase in the use of digital lending platforms by banking
and financial services to enhance financing services in the region. The market
in North America is also expected to grow due to the adoption of advanced
technologies like e-signatures, artificial intelligence (AI), machine learning,
and advanced analytics by companies that provide house financing services.
"Housing
Loans are easy to avail, offer flexible interest rates, and set monthly
payments. In addition, Housing Loan demand is not limited to purchasing a home,
but certain loans include land purchase, plot purchase, construction, re-sale,
and balance transfer. Moreover, online portals are a more favorable factor in the
foreseeable future which are also expected to significantly contribute to the Global
Housing Loan market in the forecast period.” said Mr. Karan Chechi, Research
Director with TechSci Research, a research based global management consulting
firm.
“Housing Loan Market - Global Industry Size, Share, Trends,
Opportunity, and Forecast, 2018-2028F Segmented By
Purpose (Home Purchase, Refinance, Home Improvement,
Construction, Other ( Re-Sale, etc.)), By End User (Employed Individuals,
Professionals, Students, Entrepreneur, Others (Homemaker, Unemployed, Retired,
etc.)), By Tenure (less than 5 years,
6-10 years, 11-24 years, and 25-30 years), By Region,”, has
evaluated the future growth potential of global housing loan market and
provides statistics and information on market structure, size, share, and
future growth. The report is intended to provide cutting-edge market
intelligence and help decision-makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges and opportunities present in the housing loan
market globally.
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