USA Home Loan Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 18.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
USA Home Loan Market Analysis
The USA Home Loan Market is valued at USD 4,400 billion and is expected to register a CAGR of 18% during the forecasted period.
The COVID-19 pandemic caused significant upheavals across all sectors of the economy, and although one would have expected the mortgage industry to suffer, too, in reality, it was quite the opposite. The mortgage industry in 2020 saw record low-interest rates, and this fueled the refinance boom as millions of homeowners were able to save significantly on their monthly payments. With an abundance of volume and thick margins, mortgage lenders were a pleased lot, and, if anything, the only real worry for them was how to scale up operations to meet the large volumes coming in.
The home loan market in the USA is a significant component of the overall mortgage industry. It plays a crucial role in facilitating homeownership by providing individuals and families with the funds necessary to purchase residential properties. The home loan market in the USA is one of the largest in the world, reflecting the country's high rate of homeownership. The US government plays a significant role in the home loan market through various programs and agencies. Mortgage rates in the US home loan market fluctuate based on various factors, including economic conditions, inflation, and market forces. Borrowers have the option to choose between fixed-rate mortgages, where the interest rate remains constant over the loan term, or adjustable-rate mortgages (ARMs), where the interest rate can change periodically. The US home loan market is influenced by a wide range of factors, including economic conditions, interest rates, housing market trends, government policies, and regulatory changes. These factors can impact the availability of credit, loan terms, and overall market conditions for borrowers.
USA Home Loan Market Trends
Growth in Nonbank Lenders is Expected to Drive the Market
Nonbank mortgage lenders offer similar services to those of traditional institutions but with lower down payments and fewer financial criteria. Because nonbanks operate without full banking licenses, they don't have to adhere to as many regulations as legacy banks, resulting in faster loan approvals and more flexible rates. Most nonbank mortgage lenders offer consumers two major services: home loans and loan refinancing. Home loans can include fixed loans, Federal Housing Administration loans, United States Department of Agriculture loans, jumbo loans, and reverse mortgage loans. Refinancing options offered by nonbank institutions often include lowering monthly mortgage payments and consolidating debt.
Nonbank lenders have gained a large footprint in the syndicated loan market, and their participation is now comparable with that of banks along important dimensions. The share of all loan facilities with nonbank involvement exceeds one-third. Around two-fifths of all nonbank lenders active in the syndicated loan market act as lead arrangers, a share similar to that of banks. Likewise, individual members of both types contribute comparable shares to the total syndicated amount on average and extend loans for similar purposes (e.g., working capital, debt repayment, or capital expenditure). That said, credit lines are more common among banks at origination, and term loans are more common among nonbanks.
Increased Online Mortgage Lending
The mortgage industry has been adopting technology to streamline the process of getting a mortgage to make the consumer experience smoother and faster. The rise of digital technology ushered in a new era for the mortgage application process as borrowers took advantage of historically low rates and lenders embraced digital mortgages more than ever before. The market size of the Online Mortgage Brokers industry in the United States grew by 12.8% per year on average between 2017 and 2022.
A new survey on borrowing and lending by ICE Mortgage Technology finds that the pandemic has permanently changed the way consumers utilize technology, and those looking to buy or refinance a home are seeking lenders who offer online tools to complete their mortgage loans from home. The overwhelming majority (99%) of lenders believe that technology can help improve the mortgage application process, citing benefits that include simplifying the entire process (74%), reducing time to close (70%), and minimizing data entry (67%). The market size of the Online Mortgage Brokers industry in the US has grown 12.8% per year on average between 2017 and 2022.
USA Home Loan Industry Overview
The USA Home Loan Market is moderately fragmented, with a large number of players operating in the market. There were several banks, non-banking financial companies (NBFCs), housing finance companies (HFCs), and cooperative banks that offered home loans to consumers. Some of the major players in the market are Rocket Mortgage, LoanDepot, Wells Fargo, Fairway Independent Mortgage, and Bank of America.
USA Home Loan Market Leaders
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Rocket Mortgage
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LoanDepot
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Wells Fargo
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Fairway Independent Mortgage
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Bank of America
*Disclaimer: Major Players sorted in no particular order
USA Home Loan Market News
- June 2023: Bank of America Corp has been adding consumer branches in four new U.S. states, it said on Tuesday, bringing its national footprint closer to rival JPMorgan Chase & Co. Bank of America will likely open new financial centers in Nebraska, Wisconsin, Alabama, and Louisiana as part of a four-year expansion across nine markets, including Louisville, Milwaukee, and New Orleans.
- July 2022: Rocket Mortgage entered the Canadian Market with the acquisition. The company expanded from offering home loans in Ontario at launch to now providing mortgages in every province, primarily from its headquarters in downtown Windsor. The Edison Financial team grew along with the company, starting with just four team members in early 2020 to more than 140 at present.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase in digitization in mortgage lending market
4.2.2 Increase in innovations in software designs to speed up the mortgage-application process
4.3 Market Restraints
4.3.1 Higher interest rate on mortgage loans and additional costs
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Current Trends and Innovations in the Market
4.6 Insights on the Impact of Government Regulations on the Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Loan Type
5.1.1 Home Purchase
5.1.2 Refinance
5.1.3 Home Improvement
5.1.4 Other Loan Types
5.2 By Source
5.2.1 Bank
5.2.2 Housing Finance Companies (HFC's)
5.3 By Interest Rate
5.3.1 Fixed Rate
5.3.2 Floating Rate
5.4 By Tenure
5.4.1 Upto 5 Years
5.4.2 6 - 10 Years
5.4.3 11 - 24 Years
5.4.4 25 - 30 Years
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Rocket Mortgage
6.2.2 LoanDepot
6.2.3 Wells Fargo
6.2.4 Fairway Independent Mortgage
6.2.5 Bank of America
6.2.6 U.S. Bank
6.2.7 JPMorgan Chase
6.2.8 PNC Bank
6.2.9 Citizens Bank
6.2.10 United Wholesale Mortgage*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
USA Home Loan Industry Segmentation
The home loan market refers to the financial sector that deals with the origination, servicing, and trading of loans used to finance residential properties. It is a specific segment of the broader mortgage industry. In the home loan market, lenders provide funds to individuals and families to purchase homes or refinance existing mortgages. The USA Home Loan Market is segmented By Loan Type (Home Purchase, Refinance, Home Improvement, Other Loan Types), By Source (Bank and Housing Finance Companies), By Interest Rate (Fixed Rate and Floating Rate), and By Tenure (Up to 5 Years, 6 - 10 Years, 11 - 24 Years, and 25 - 30 Years). The report offers market size and forecasts in value (USD) for all the above segments.
Frequently Asked Questions
What is the current USA Home Loan Market size?
The USA Home Loan Market is projected to register a CAGR of 18% during the forecast period (2024-2029)
Who are the key players in USA Home Loan Market?
Rocket Mortgage, LoanDepot, Wells Fargo, Fairway Independent Mortgage and Bank of America are the major companies operating in the USA Home Loan Market.
What years does this USA Home Loan Market cover?
The report covers the USA Home Loan Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the USA Home Loan Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
USA Home Loan Industry Report
Statistics for the 2024 USA Home Loan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. USA Home Loan analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
