Mortgage-Backed Securities Market Seen Soaring 6.49% Growth to Reach USD billion by 2033, Projects UnivDatos.

Key Highlights of the Report:

• The rising demand for portfolio diversification is driving the growth of the mortgage-backed securities market as it provides exposure to the real estate market while offering steady, bond-like income streams supported by pools of mortgages.

• Based on the type category, the residential MBS segment dominated the mortgage-backed securities market due to the high volume of home loans and government-backed programs, which ensure investors the timely payment of amounts.

• The Asia-Pacific mortgage-backed securities (MBS) market is showing the fastest growth over the next years due to rapid urbanization, low interest rates, and increasing demand for residential properties.

• The major players are: Fannie Mae, Freddie Mac, JPMorgan Chase & Co., Ginnie Mae, Wells Fargo & Company, Bank of America, Goldman Sachs, Morgan Stanley, Deutsche Bank AG, and Royal Bank of Canada.

According to a new report by UnivDatos, the Mortgage-Backed Securities Market is expected to reach USD billion in 2033 by growing at a CAGR of 6.49%. The mortgage-backed securities (MBS) market is experiencing steady growth due to rising demand for home financing, a supportive government framework, and technological advancements in the financial industry. Growing urbanization and the need for affordable housing are increasing the pool of mortgage loans that can be turned into MBS, providing investors with stable returns. Furthermore, government programs like tax incentives, housing subsidies, and initiatives such as India’s PM Awas Yojana further boost mortgage creation, providing new opportunities to MBS investors, hence driving the growth of the market.

Rising Demand for Portfolio Diversification

The rising demand for portfolio diversification is one of the key drivers of the mortgage-backed securities market. In today’s fast-changing investment environment, institutional investors like pension funds, insurance companies, and asset managers are progressively diversifying their portfolios beyond stocks and government bonds. MBS provide exposure to the real estate market and also provide bond-like income streams supported by pools of mortgages. MBS instruments are available in different forms and risk levels, ranging from government-backed securities with low risk to private-label securities offering higher returns. This versatility allows investors to choose securities that match their risk and return preferences, helping to distribute risk across different asset classes and economic conditions. Furthermore, the increasing focus on structured finance products in investment strategies further improves the attractiveness of MBS, as they offer opportunities for long-term, stable returns. For example, in May 2024, Barclays structured its mortgage-based security (MBS) transaction to improve the diversification of its Italian home loan portfolio to Golden Tree Asset Management. Moreover, institutional investors in developed markets like the U.S., Europe, and Japan, as well as emerging markets in the Asia-Pacific, are increasingly including MBS in their portfolios to enhance yield and stability. The ongoing development of transparent credit rating systems and improved regulatory oversight has also increased investor confidence, thereby driving the growth of the market.

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According to the report, North America held the dominant market share in the Mortgage-Backed Securities Market

The North American dominated the global mortgage-backed securities (MBS) market due to its well-established financial infrastructure, robust institutional frameworks, and deep capital markets, making it a hub for MBS issuance and investment. Banks and financial institutions across regions offer robust loan plans, services, and securitization capability, enabling large volumes of mortgage loans to be turned into tradable asset securities, driving the growth of the market. Furthermore, government policies and regulatory frameworks across the region promote liquidity, investor protection, and risk management, which further strengthen the region's position in the market. Moreover, the involvement of institutional investors, pension funds, and insurance companies guarantees high liquidity, making MBS easily tradable and attracting global participation. Technological progress, including digital mortgage platforms, automated servicing systems, and data analytics, improves efficiency, risk management, and operational effectiveness, fueling the growth of the market.

Key Offerings of the Report

Market Size, Trends, & Forecast by Revenue | 2025−2033.

Market Dynamics – Leading Trends, Growth Drivers, Restraints, and Investment Opportunities

Market Segmentation – A detailed analysis By Type, By Issuer, By Maturity, and By Region

Competitive Landscape – Top Key Vendors and Other Prominent Vendors