Mortgage-Backed Securities Market: Current Analysis and Forecast (2025-2033)

Global Mortgage-Backed Securities Market Size & Forecast

The global mortgage-backed securities market was valued at USD 13,625.84 billion in 2024 and is expected to grow at a strong CAGR of around 6.49% during the forecast period (2025-2033F), driven by the rising investor appetite for stable, income-generating assets and the expansion of securitization frameworks across emerging markets.

Mortgage-Backed Securities Market Analysis

Mortgage-backed securities (MBS) are fixed-income securities that employ mortgage loans as collateral and the source of funds for payments on the security. The creation of MBS begins with a financial institution, such as a bank or credit union, extending a mortgage loan to a borrower. The lender will then pool groups of loans with similar characteristics to create securities themselves or sell the loans to issuers of mortgage-backed securities handle the aggregation of loans and pooling. The loans are sold to a trust, which will be the issuer of the MBS. Once securitized, the MBS can be sold to investors or kept as investments. 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.

Global Mortgage-Backed Securities Market Trends

This section discusses the key market trends that are influencing the various segments of the global mortgage-backed securities market, as found by our team of research experts.

Emerging Technological Advancements in the Mortgage Sector

Technological advancements in the mortgage sector are one of the key trends of the mortgage-backed securities (MBS) market, promoting efficiency, transparency, and accessibility. The integration of advanced technologies such as artificial intelligence (AI), blockchain, cloud computing, and big data analytics has changed how mortgage loans are originated, processed, and securitized. AI-powered models now allow lenders and investors to assess borrower risk more precisely, forecast prepayment behavior, and manage portfolios in real time. This minimizes the risks and improves the overall performance of MBS, thereby accelerating the growth of the market. Additionally, blockchain technology has improved transparency and security by creating tamper-proof digital ledgers for recording mortgage transactions, minimizing fraud, accelerating loan verification, and allowing faster settlements. Moreover, fintech innovations are also promoting digital mortgage lending, which automates loan applications and credit assessments, shortening approval times and reducing costs. This digital transformation not only increases market participation but also strengthens investor confidence by providing real-time insights into asset quality and cash flow performance.

Mortgage-Backed Securities Industry Segmentation

This section provides an analysis of the key trends in each segment of the global mortgage-backed securities market report, along with forecasts at the global, regional, and country levels for 2025-2033.

The Residential MBS Segment Dominates the Global Mortgage-Backed Securities Market

Based on the type category, the market is categorized into commercial MBS, residential MBS, and others. Among these, the residential MBS segment has the largest market share because of the high volume of home loans and government-backed programs. The government-backed programs offer guarantees that ensure timely payments to investors, reducing credit risk and thus boosting market expansion. However, commercial MBS is exhibiting the fastest growth due to the growth of commercial real estate, including offices, retail centers, warehouses, and industrial properties, which has expanded the volume of commercial loans available. Commercial mortgage-backed securities (CMBS) generally provide a better return rate than residential MBS, attracting investors. Furthermore, innovations such as structured CMBS products with tranches tailored for various risk levels further boost market growth.

The Short-Term Segment Dominates the Global Mortgage-Backed Securities Market.

Based on the maturity category, the market is categorized into short-term, medium-term, and long-term. Among these, the short-term segment dominates the market share due to lower risk and greater liquidity. Investors frequently prefer short-term bonds as they offer quicker principal repayment and faster access to funds, reducing the credit risk and high interest rate. In addition, short-term bonds are more liquid and attractive to investors looking for predictable cash flows, especially when interest rates fluctuate, thereby driving the market growth. However, the long-term segment is experiencing the fastest growth due to rising demand for long-duration home loans. Investors are also looking for bonds that offer higher return rates, thereby driving the growth of the market.

North America holds the largest market share in the global 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.

The U.S. held a Dominant share of the North America Mortgage-Backed Securities Market in 2024

The United States dominated the North American mortgage-backed securities market because of high issuance and investment activity, a strong housing finance system, and government involvement. Government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae play essential roles in issuing MBS, enhancing transparency for investors, and supporting market growth. Furthermore, rising homeownership rates, increasing demand for housing finance, and a large pool of conforming and government-backed loans continue to fuel market expansion. The country's advanced capital markets facilitate large-scale trading of MBS, attracting institutional investors such as pension funds, insurance companies, and asset managers, which further speeds up market growth.

Mortgage-Backed Securities Industry Competitive Landscape

The global Mortgage-backed securities market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, geographical expansions, and mergers and acquisitions.

Top Mortgage-Backed Securities Market Companies

Some of the major players in the market 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.

Recent Developments in the Mortgage-Backed Securities Market

• In August 2025, the Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund, launched Saudi Arabia’s first residential mortgage-backed securities (RMBS) transaction. This transaction aims to improve liquidity in the housing finance sector and broaden investment opportunities by transforming residential mortgage loans into tradable securities.

• In May 2025, India's first mortgage-backed Pass-Through Certificates (PTCs) structured by RMBS Development Company Limited were listed on the National Stock Exchange, marking a significant development in the country's housing finance sector. This initiative aims to integrate the housing finance market with the debt market to improve liquidity and investor participation, thereby driving the growth of the mortgage-backed securities market in India.

Global Mortgage-Backed Securities Market Report Coverage

Reasons to Buy the Mortgage-Backed Securities Market Report:

• The study includes market sizing and forecasting analysis confirmed by authenticated key industry experts.

• The report briefly reviews overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, type portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional level analysis of the industry.

Customization Options:

The global mortgage-backed securities market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.