Allied Market Research

2024

Mortgage Funds Market

Mortgage Funds Market Size, Share, Competitive Landscape and Trend Analysis Report by Type and by End User : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : Financial Services

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Author's: | Vineet Kumar
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Mortgage Funds Market Outlook – 2027 

Globally, the market for mortgage funds has experienced considerable growth, and is expected to expand as mortgage rates rise year-on-year and largely favors mortgage backed securities in the market. Mortgage fund is a portfolio trust administered by a fund manager that invests in mortgages on real estate. Fund raises capital by selling trust units, which provides mortgage loans to a number of borrowers purchasing and building properties. Furthermore, mortgage funds usually hold bulk investments in mortgage-backed securities with a small proportion of cash and other debt.

The global mortgage funds market is segmented on the basis of type, end user, and region. Based on type, the market is bifurcated into pooled mortgage fund and contributory mortgage fund. On the basis of end user, the market is divided into investors, financial institutions, insurance companies, banks, and others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global mortgage funds industry include BlackRock Inc., The Vanguard Group Inc., J.P. Morgan & Co., Citigroup Inc., PIMCO, Goldman Sachs Asset Management LP, Wellington Management Company, Charles Schwab Corporation, Fidelity Investments Inc., and Franklin Resources Inc. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global mortgage funds market. 

Top Impacting Factors

With increase in risk among equity and other financial instruments, investors are looking for safer assets and expecting a monthly payment, which is one of the major factors that drive the market growth. However, increase in competition from banks & large wealth management firms, evolution of government regulations, and unstable interest rates affect lending rates of mortgage. These factors limit growth of the mortgage funds market. 

On the contrary, rise in number of banks and increase in investments in asset & mortgage backed securities are some of factors expected to provide key opportunities to the market. 

New Launch of Benchmark Index For Mortgage Funds to Boost Demand

New launches in the mortgage funds market boosts the demand for advance and customized services and has become a major driver for the market growth. For instance, in May 2020, in Canada, FTSE Russell, a provider of equity indexes launched a benchmark index for the domestic mortgage-backed securities market, offering a modern route to reach fixed income investing. In addition, FTSE Canada NHA MBS 975 Index, which accounts for National Housing Act mortgage-backed securities, provides a transparent indicator for nearly $500 billion market.  

Increasing Demand in China

In China, government is encouraging investments in mortgage related securities. The country has aimed at real estate investment trusts to leverage capital accumulation. Moreover, Real Estate Investment Trust (REITs), which is a company that owns income-producing real estate, enhances growth of funds for reinvestment by raising financial capital and reducing company debt in the market. Hence, China is expected to launch mutual funds to public REITs, which can be freely traded in the country's markets as stocks. The move was set to pool more investments to accumulate capital for building properties and other government reforms such as roads, hospitals, sewage facilities, and housing. 

Key Benefits of the Report

  • This study presents analytical depiction of the global mortgage funds market size along with the current trends and future estimations to determine the imminent investment pockets.    
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global mortgage funds market share.     
  • The current market is quantitatively analyzed to highlight the global mortgage funds market growth scenario.         
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.    
  • The report provides a detailed mortgage funds market analysis based on the present and future competitive intensity of the market.

COVID-19 Scenario Analysis

  • With the rise in the COVID-19 pandemic, non-essential businesses have been forced to close in several countries, which have triggered significant tightening of commercial and residential mortgage payments. 
  • Mortgage lenders and mortgage-backed security holders are equally facing consequences of the crisis with poor construction activities and related business restrictions. 
  • For instance, in the U.S., the Federal Housing and Finance Agency has proposed a program which is a stimulus move, allowing lending firms to pay out cash dividends to mortgage bond holders in advance for four months. 

Questions Answered in the Mortgage Funds Market Research Report

  • Who are the leading market players active in global mortgage funds market?
  • What would be the detailed impact of COVID-19 on global mortgage funds market trends?
  • What current trends would influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the global mortgage funds market?
  • What are the projections for the future that would help in taking further strategic steps?

Mortgage Funds Market Report Highlights

Aspects Details
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By Type
  • Pooled Mortgage Fund
  • Contributory Mortgage Fund
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By End User
  • Investors
  • Financial Institutions
  • Insurance Companies
  • Banks
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

BlackRock Inc., J.P. Morgan & Co., PIMCO, Wellington Management Company, Goldman Sachs Asset Management LP, Franklin Resources Inc., The Vanguard Group Inc., Citigroup Inc., Fidelity Investments Inc., Charles Schwab Corporation

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Mortgage Funds Market

Global Opportunity Analysis and Industry Forecast, 2023-2032