Report Description

United States Home Loan Market is anticipated to project robust growth in the forecast period because of the increasing number of potential home loan buyers, automation of the loan process, and increasing digitalization.

 

A loan from a financial institution to purchase residential property is known as home loan. Customers can utilize a home loan to buy a property that is either finished and ready to move into or is still being built. Banks and Non-Banking Financial Companies both offer home loans (NBFCs). These come with a range of interest rates that are frequently dependent on your credit score. Typically, home loans have a term of up to 30 years and require repayment in Equated Monthly Installments.

 

Consumer demand for mortgages has surged significantly in the United States over the past two years due to the rise in home buying during COVID-19.Banks, nonbank lenders, and mortgage sector investors would continue to see strong demand from the purchase market.

 

Increasing Homeownership in United States Will Lead to the Market Growth

The COVID-19 outbreak, and the consequent economic collapse haven't diminished the American ambition of home ownership. The overall expansion of the economy and the rise in households in the United States over time contribute to the portion of the increase in homeownership. In 2020, the country had more than 2.1 million homeowners, or 2.6% annual growth. Since 1965, this is the seventh-largest percentage rise in homeowners The number of new homeowners is influenced by the number of households and the growth rate of the homeowner population.. The Midwest and South continue to have higher homeownership rates than the Northeast and West. While being statistically constant in the Northeast and West, homeownership grew by at least one percent ,in the Midwest and South. Thus, the demand for home loans will grow significantly with increasing home ownership.

 


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Automation in Home Loan Process Will Boost the Market Growth

The mortgage business has been increasingly implementing technology to speed up and simplify the front-to-back mortgage application process. This is being done to improve the customer experience. By increasing consumer access to home financing and home-buying services, investors can help advance improvements at the points of origination, processing, underwriting, and loan servicing. The mortgage industry has been implementing technology to improve the customer experience and speed up the mortgage application process. Compared to Chinese digital payment companies, which saw growth of 17 percent in 2020, the U.S. digital payments business expanded at a faster rate of 23%. These software programs are made to accelerate the mortgage application process, reduce costs for the lender, and enhance the client experience in general. Thus, increasing digitalization will fuel the home loan market in the United States.

 

Growth of Nonbank Lenders Will Fuel the Market Growth

Nonbanks stepped in to fill the gap, especially with borrowers looking for refinancing.Many significant bank and nonbank lenders have invested in proprietary or third-party technologies over the past five years in various portions of the value chain to support diverse operations. Front-end platform modernization, workflow management, document extraction and management, income and asset verification, employment verification, title verification, appraisal management, e-closings, automated compliance, and decisions are just a few of the lengthy lists of steps that have been addressed. Over the past ten years, nonbank mortgage lenders have overtaken banks' market share. Since 2016, these lenders have accounted for more than half of the market. They don't accept deposits or provide other banking services. Seven of the top ten mortgage lenders in the US at the end of 2020 were not banks. Thus, the growth of nonbank lenders will fuel the market growth.

 

Market Segmentation

The United States Home Loan Market is segmented based on type, end-user, tenure period, region, and competitional landscape. Based on type, the market is further fragmented into home purchase, refinance, home improvement, construction, and other (re-sale, etc.). Based on the end user, the market is segmented into employed individuals, professionals, students, entrepreneurs, and others (homemakers, unemployed, retired, etc.). The market is segmented based on the tenure period into less than 5 years, 6-10 years, 11-24 years, and 25-30 years. Based on region, the market is divided into South, West, Midwest, and Northeast.

 

Company Profiles

Bank of America Corporation, JPMorgan Chase & Co., Citigroup, Inc., Wells Fargo & Co., U.S. Bancorp, PNC Financial Services Group, Inc., American Express Company, Ally Financial Inc., Truist Financial Corporation and Goldman Sachs & Co. LLC. are also actively entering the market in recent years and further strengthening the market growth.

Attribute

Details

Base Year

2022

Historical Years

2018–2021

Estimated Year

2023E

Forecast Period

2024F –2028F

Quantitative Units

Revenue in USD Million and CAGR for 2018-2022 and 2023E- 2028F

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Type

End User

Tenure Period

Company

Regional Scope

 South, West, Midwest, and Northeast

Key Companies Profiled

Bank of America Corporation, JPMorgan Chase & Co., Citigroup, Inc., Wells Fargo & Co., U.S. Bancorp, PNC Financial Services Group, Inc., American Express Company, Ally Financial Inc., Truist Financial Corporation and Goldman Sachs & Co. LLC.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

Report Scope:

In this report, United States home loan market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

  • United States Home Loan Market, By Type:
    • Home Purchase
    • Refinance
    • Home Improvement
    • Construction
    • Other
  • United States Home Loan Market, By End User:
    • Employed Individuals
    • Professionals
    • Students
    • Entrepreneur
    • Others
  • United States Home Loan Market, By Tenure Period:
    • Less than 5 years
    • 6-10 years
    • 11-24 years
    • 25-30 years
  • United States Home Loan Market, By Region:
    • South
    • Midwest
    • Northeast
    • West 

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in United States Home Loan Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

United States Home Loan Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Market)

4.1.  Sample Size Determination

4.2.  Respondent Demographics

4.2.1.     By Gender

4.2.2.     By Age

4.2.3.     By Occupation

4.3.  Brand Awareness

4.4.  Factors Influencing Purchase Decision

4.5.  Sources of Information

4.6.  Challenges Faced After Purchase

5.    United States Home Loan Market Outlook

5.1.  Market Size & Forecast          

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.     By Type Market Share Analysis (Home Purchase, Refinance, Home Improvement, Construction, Others (Re-Sale etc.))

5.2.2.     By End User Market Share Analysis (Employed Individuals, Professionals, Students, Entrepreneur, Others (Homemaker, Unemployed, Retired, etc.))

5.2.3.     By Tenure Period Market Share Analysis (Less than 5 years, 6-10 years, 11-24 years, and 25-30 years)

5.2.4.    By Regional Market Share Analysis

5.2.4.1.         South Market Share Analysis

5.2.4.2.         Midwest Market Share Analysis

5.2.4.3.         Northeast Market Share Analysis

5.2.4.4.         West Market Share Analysis

5.2.5.     By Company Market Share Analysis

5.3.  United States Home Loan Market Mapping & Opportunity Assessment

5.3.1.     By Type Market Mapping & Opportunity Assessment

5.3.2.     By End User Market Mapping & Opportunity Assessment

5.3.3.     By Tenure Period Market Mapping & Opportunity Assessment

5.3.4.     By Regional Market Mapping & Opportunity Assessment

6.    United States Home Purchase Home Loan Market Outlook

6.1.  Market Size & Forecast          

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By End User Market Share Analysis

6.2.2.     By Tenure Period Market Share Analysis

7.    Unites States Refinance Home Loan Market Outlook

7.1.  Market Size & Forecast          

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By End User Market Share Analysis

7.2.2.     By Tenure Period Market Share Analysis

8.    Unites States Home Improvement Home Loan Market Outlook

8.1.  Market Size & Forecast          

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By End User Market Share Analysis

8.2.2.     By Tenure Period Market Share Analysis

9.    Unites States Construction Home Loan Market Outlook

9.1.  Market Size & Forecast          

9.1.1.     By Value

9.2.  Market Share & Forecast

9.2.1.     By End User Market Share Analysis

9.2.2.     By Tenure Period Market Share Analysis

10.  Market Dynamics

10.1.              Drivers

10.1.1.  Increasing home ownership

10.1.2.  Automation in loan process

10.1.3.  Growth of nonbank lenders

10.2.              Challenges

10.2.1.  Security concerns

10.2.2.  Surging competition

11.  Impact of COVID-19 on United States Home Loan Market

11.1.              Impact Assessment Model       

11.1.1.  Key Segments Impacted

11.1.2.  Key Regions Impacted

12.  Market Trends & Developments

12.1.              Increasing number of fintech companies

12.2.              Rising focus towards loan sector by Bank and NBFCs

12.3.              Increasing construction Activities

12.4.              Rapid urbanization

12.5.              Attractive marketing strategies

13.  Porter’s Five Forces Model

13.1.              Competitive Rivalry

13.2.              Bargaining Power of Buyers

13.3.              Bargaining Power of Suppliers

13.4.              Threat of New Entrants

13.5.              Threat of Substitutes

14.  SWOT Analysis

14.1.              Strengths

14.2.              Weakness

14.3.              Opportunities

14.4.              Threats

15.  Policy & Regulatory Landscape

16.  United States Economic Profile

17.  Competitive Landscape

17.1.              Company Profiles

17.1.1.  Bank of America Corporation

17.1.1.1.      Company Details

17.1.1.2.      Product & Services

17.1.1.3.      Financials (As Per Availability)

17.1.1.4.      Key market Focus & Geographical Presence

17.1.1.5.      Recent Developments

17.1.1.6.      Key Management Personnel

17.1.2.  JPMorgan Chase & Co. 

17.1.2.1.      Company Details

17.1.2.2.      Product & Services

17.1.2.3.      Financials (As Per Availability)

17.1.2.4.      Key market Focus & Geographical Presence

17.1.2.5.      Recent Developments

17.1.2.6.      Key Management Personnel

17.1.3.  Citigroup, Inc.

17.1.3.1.      Company Details

17.1.3.2.      Product & Services

17.1.3.3.      Financials (As Per Availability)

17.1.3.4.      Key market Focus & Geographical Presence

17.1.3.5.      Recent Developments

17.1.3.6.      Key Management Personnel

17.1.4.  Wells Fargo & Co.

17.1.4.1.      Company Details

17.1.4.2.      Product & Services

17.1.4.3.      Financials (As Per Availability)

17.1.4.4.      Key market Focus & Geographical Presence

17.1.4.5.      Recent Developments

17.1.4.6.      Key Management Personnel

17.1.5.  U.S. Bancorp

17.1.5.1.      Company Details

17.1.5.2.      Product & Services

17.1.5.3.      Financials (As Per Availability)

17.1.5.4.      Key market Focus & Geographical Presence

17.1.5.5.      Recent Developments

17.1.5.6.      Key Management Personnel

17.1.6.  PNC Financial Services Group, Inc.

17.1.6.1.      Company Details

17.1.6.2.      Product & Services

17.1.6.3.      Financials (As Per Availability)

17.1.6.4.      Key market Focus & Geographical Presence

17.1.6.5.      Recent Developments

17.1.6.6.      Key Management Personnel

17.1.7.  American Express Company

17.1.7.1.      Company Details

17.1.7.2.      Product & Services

17.1.7.3.      Financials (As Per Availability)

17.1.7.4.      Key market Focus & Geographical Presence

17.1.7.5.      Recent Developments

17.1.7.6.      Key Management Personnel

17.1.8.  Ally Financial Inc.

17.1.8.1.      Company Details

17.1.8.2.      Product & Services

17.1.8.3.      Financials (As Per Availability)

17.1.8.4.      Key market Focus & Geographical Presence

17.1.8.5.      Recent Developments

17.1.8.6.      Key Management Personnel

17.1.9.  Truist Financial Corporation

17.1.9.1.      Company Details

17.1.9.2.      Product & Services

17.1.9.3.      Financials (As Per Availability)

17.1.9.4.      Key market Focus & Geographical Presence

17.1.9.5.      Recent Developments

17.1.9.6.      Key Management Personnel

17.1.10.                Goldman Sachs & Co. LLC.

17.1.10.1.    Company Details

17.1.10.2.    Product & Services

17.1.10.3.    Financials (As Per Availability)

17.1.10.4.    Key market Focus & Geographical Presence

17.1.10.5.    Recent Developments

17.1.10.6.    Key Management Personnel

18.  Strategic Recommendations/Action Plan

18.1.              Key Focus Areas

18.2.              Target Regions

18.3.              Target Type

18.4.              Target End User

18.5.              Target Tenure Period

19. About Us & Disclaimer

Figures and Tables

Frequently asked questions

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The key factors driving the United States Home Loan Market growth are increasing digitization, rising preference for a loan among the young generation, and growth of nonbank lenders.

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Due to fewer potential buyers touring homebuilders' models, production is slowing down nationally, negatively impacting inventory. The U.S. Census reports that home sales for single-family houses dropped to 18.5% in July from July 2021.

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The three main lending channels are- Commercial Banks and Credit Unions, Mortgage Banks, and Brokers.

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Most lenders demand a down payment of at least 20% of the property's purchase price. Several lenders accept down payments of less than 20% so long as you meet the loan's pre-qualification requirements.

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Srishti Verma

Business Consultant
Press Release

United States Home Loan Market to be Dominated by Home Purchase Segment During the Forecasted Period

Feb, 2023

Increasing homeownership in the United States and the growth of non-bank lenders will fuel the development of the United States home loan market through 2028.