The year 2021 saw the peak in issuance of residential mortgage backed securities (MBS), at *** trillion U.S. dollars. Since then, MBS issuance has slowed, reaching *** trillion U.S. dollars in 2023. What are mortgage backed securities? A mortgage backed security is a financial instrument in which mortgages are bundled together and sold to investors. The idea is that the risk of these individual mortgages is pooled when they are packaged together. This is a sound investment policy, unless the foreclosure rate increases significantly in a short amount of time. Mortgage risk Since mortgages are loans backed by an asset, the house, the risk is often considered relatively low. However, the loan maturities are very long, sometimes decades, meaning lenders must factor in the risk of a shift in the economic climate. As such, interest rates on longer mortgages tend to be higher than on shorter loans. The ten-year treasury yield influences these rates, since it is a long-term rate that most investors accept as risk-free. Additionally, a decline in the value of homeowner equity could lead to a situation where the debtor is “underwater” and owes more than the home is worth.

The weekly average value of mortgage-backed securities held by Federal Reserve Banks in the United States decreased in the second half of 2022 and the first half of 2023, after a period of sharp increase in 2020 and 2021. As of ************, the weekly average value of mortgage-backed securities held by the Federal Reserve amounted to roughly **** trillion U.S. dollars.

Among the ** Federal Reserve Banks of the Federal Reserve System in the United States, the Federal Reserve Bank of New York held by far the highest value of mortgage-backed securities in 2023. With approximately **** trillion U.S. dollars worth of securities, the Federal Reserve Bank of New York held over ** percent of the Fed's total mortgage-backed securities. It was followed by the Federal Reserve Bank of San Francisco, which held roughly *** billion U.S. dollars worth of securities.

The global mortgage-backed security market is projected to grow from USD XXX million in 2023 to USD XX million by 2033, exhibiting a CAGR of XX% between 2023 and 2033. The market growth is primarily attributed to the increasing demand for home loans and growing investment in the residential real estate sector. Furthermore, government initiatives to promote homeownership and the development of innovative mortgage products are expected to drive market expansion. Key market drivers include the rising population, increasing urbanization, and growing disposable income, which are contributing to the increased demand for housing. Additionally, favorable government policies, such as low interest rates, tax incentives, and mortgage insurance programs, are encouraging homeownership and stimulating market growth. Moreover, the increasing popularity of non-traditional mortgage products, such as Alt-A loans and subprime mortgages, is broadening the market's reach and catering to a wider range of borrowers.

Guarantees of Mortgage-backed Securities Loan Guarantee Program account, Iteration 2, Fiscal year 2024

United States PDS: Net Positions: Mortgage-Backed Securities: Non-Agency MBS: Other CMBS data was reported at 7.060 USD bn in 30 Apr 2025. This records an increase from the previous number of 6.906 USD bn for 23 Apr 2025. United States PDS: Net Positions: Mortgage-Backed Securities: Non-Agency MBS: Other CMBS data is updated weekly, averaging 6.378 USD bn from Apr 2013 (Median) to 30 Apr 2025, with 631 observations. The data reached an all-time high of 12.782 USD bn in 29 May 2013 and a record low of 4.067 USD bn in 10 May 2023. United States PDS: Net Positions: Mortgage-Backed Securities: Non-Agency MBS: Other CMBS data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.Z040: Primary Dealer Statistics: Net Positions.

Mortgage Backed Security Market Outlook

The global mortgage-backed security (MBS) market size was valued at approximately $2.1 trillion in 2023 and is projected to reach $3.5 trillion by 2032, growing at a CAGR of 5.5%. A key driver of this growth is the increasing demand for mortgage-backed securities due to their ability to provide liquidity and diversify investment portfolios. The growth is further stimulated by favorable government policies and increased homeownership rates, which collectively bolster the issuance of new MBS.

One of the primary growth factors for the MBS market is the low-interest-rate environment, which has persisted over recent years. This scenario has encouraged borrowing and refinancing activities, leading to a higher number of mortgages that can be securitized. Moreover, the stability and relatively lower risk associated with MBS compared to other investment vehicles make them an attractive option for institutional investors. Additionally, advancements in financial technology have streamlined the process of bundling and selling these securities, increasing market efficiency.

Another significant factor contributing to the expansion of the MBS market is the role of government-sponsored enterprises (GSEs) such as Fannie Mae, Freddie Mac, and Ginnie Mae. These GSEs guarantee a significant portion of the residential MBS, providing a safety net that minimizes risk for investors. The support from these entities ensures a continuous and reliable flow of investment into the housing sector, which in turn stimulates further securitization of mortgages. Moreover, government policies aimed at bolstering housing finance systems in emerging markets are expected to create additional opportunities for growth.

The diversification of mortgage products, including the rise in demand for commercial mortgage-backed securities (CMBS), is another driving force for the market. Commercial real estate has shown robust growth, and investors are increasingly looking towards CMBS as a way to gain exposure to this sector. The structured nature of these securities, offering tranches with varying risk and return profiles, allows investors to tailor their investment strategies according to their risk tolerance.

In the context of the MBS market, Lenders Mortgage Insurance (LMI) plays a crucial role in facilitating homeownership, especially for borrowers who are unable to provide a substantial down payment. LMI is a type of insurance that protects lenders against the risk of borrower default, allowing them to offer loans with lower down payment requirements. This insurance is particularly significant in markets where home prices are high, and saving for a large deposit is challenging for many potential homeowners. By mitigating the risk for lenders, LMI enables more individuals to enter the housing market, thereby supporting the overall growth of mortgage-backed securities. As a result, LMI not only aids in increasing homeownership rates but also contributes to the liquidity and stability of the housing finance system.

Type Analysis

The mortgage-backed security market is bifurcated into Residential MBS and Commercial MBS. Residential MBS (RMBS) dominate the market due to the larger volume of residential mortgages compared to commercial ones. RMBS are typically backed by residential loans, including home mortgages, and are considered less risky. They offer a steady income stream to investors through mortgage payments made by homeowners. The demand for RMBS is bolstered by the high rate of homeownership and the continuous flow of new mortgages.

On the other hand, Commercial MBS (CMBS) are seeing increased traction due to their attractive yields and the growth of the commercial real estate sector. CMBS are backed by loans on commercial properties such as office buildings, retail centers, and hotels. They offer investors exposure to the commercial property market, which is often less correlated with the residential real estate market, providing an additional layer of diversification. The complexity and higher risk associated with CMBS attract sophisticated investors looking for higher returns.

Within RMBS, the market is further segmented into agency RMBS and non-agency RMBS. Agency RMBS are guaranteed by GSEs, making them more secure and attractive to risk-averse investors. Non-agency RMBS, though not backed by GSEs, offer higher yields and are appealing to investors with a higher risk appetite. The interplay betw

Guarantees of Mortgage-backed Securities Capital Reserve Account account, Iteration 1, Fiscal year 2023

View the GS Mortgage-Backed Securities Trust (GSMBS) 2023-CCM1 deal profile

United States - Assets: Securities Held Outright: Mortgage-Backed Securities: Maturing in over 5 Years to 10 Years: Change in Wednesday Level from Previous Wednesday Level was 0.00000 Mil. of U.S. $ in July of 2025, according to the United States Federal Reserve. Historically, United States - Assets: Securities Held Outright: Mortgage-Backed Securities: Maturing in over 5 Years to 10 Years: Change in Wednesday Level from Previous Wednesday Level reached a record high of 13477.00000 in November of 2018 and a record low of -4663.00000 in December of 2023. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Assets: Securities Held Outright: Mortgage-Backed Securities: Maturing in over 5 Years to 10 Years: Change in Wednesday Level from Previous Wednesday Level - last updated from the United States Federal Reserve on July of 2025.

View the GS Mortgage-Backed Securities Trust (GSMBS) 2023-PJ5 deal profile

United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks was 6.10000 % Chg. at Annual Rate in June of 2025, according to the United States Federal Reserve. Historically, United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks reached a record high of 40.80000 in July of 2010 and a record low of -17.50000 in October of 2023. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks - last updated from the United States Federal Reserve on August of 2025.

United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions was 34.80000 % Chg. at Annual Rate in May of 2025, according to the United States Federal Reserve. Historically, United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions reached a record high of 253.10000 in December of 2017 and a record low of -217.60000 in January of 2023. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions - last updated from the United States Federal Reserve on July of 2025.

United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions was 20.60000 % Chg. at Annual Rate in January of 2025, according to the United States Federal Reserve. Historically, United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions reached a record high of 89.40000 in April of 2015 and a record low of -104.30000 in January of 2023. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions - last updated from the United States Federal Reserve on July of 2025.

The volume of mortgage-backed securities issuance fluctuated significantly in the United States between 2014 and 2024. In 2024, the volume of the mortgage-backed securities issuance in the United States amounted to 1.6 trillion U.S. dollars.

Guarantees of Mortgage-backed Securities Liquidating Account account, Iteration 2, Fiscal year 2023

Asset-backed Securities Market Outlook 2032

The global asset-backed securities market size was USD 2,060.97 Million in 2023 and is likely to reach USD 4,431.66 Million by 2032, expanding at a CAGR of 7.5% during 2024–2032. The market is driven by the increasing financial awareness among the consumers worldwide.



Increasing demand for higher yield in a low-interest-rate environment is expected to drive the asset-backed securities (ABS) market, during the forecast period. ABS are financial securities backed by a loan, lease, or receivables against assets other than real estate and mortgage-backed securities. They are a way to raise money for companies and a means of investment for investors, offering a diverse range of investment opportunities with varying risk and return profiles.

Growing awareness and understanding of ABS among investors are contributing to their popularity. These securities provide a way to invest in a wide range of income-generating assets, from credit card receivables and auto loans to student loans and other services. The ability to tailor ABS to meet specific investment objectives, such as risk tolerance and return requirements, makes them an attractive option for many investors.



Rising regulatory scrutiny and the need for transparent and robust structures are shaping the ABS market. The financial crisis of 2008 highlighted the risks associated with these securities, leading to significant changes in the market. Today, issuers are focusing on creating transparent, straightforward, and robust structures, which is expected to further boost investor confidence and drive the growth of the ABS market.

Impact of Artificial Intelligence (AI) in Asset-backed Securities Market

The use of artificial intelligence is likely to boost the asset-backed securities market. AI's "https://dataintelo.com/report/global-advanced-analytics-market" style="color:#0563c1; " target="_blank"><span lang="EN-US"

Asset Backed Securities Market size was valued at USD 2510.83 Billion in 2023 and is projected to reach USD 3757.14 Billion by 2031, growing at a CAGR of 5.70% from 2024 to 2031.Key Market Drivers:Growing demand for alternative investments: With traditional assets offering lower returns, investors are increasingly turning to ABS for diversification and higher yields. The global ABS market is expected to grow, driven by its appeal to institutional investors seeking stable cash flows in volatile market environments.Rising consumer credit growth: The global consumer credit market, valued at over $15 trillion, is a key driver for ABS, especially in sectors like auto loans, credit cards, and personal loans. With increased borrowing, particularly in emerging markets, the securitization of these loans through ABS provides lenders with additional liquidity.

United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Domestically Chartered Commercial Banks was 2.00000 % Chg. at Annual Rate in May of 2025, according to the United States Federal Reserve. Historically, United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Domestically Chartered Commercial Banks reached a record high of 40.30000 in July of 2010 and a record low of -17.90000 in October of 2023. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Domestically Chartered Commercial Banks - last updated from the United States Federal Reserve on July of 2025.

CN: Residential Mortgage Backed Security CPR Index data was reported at 0.134 NA in 24 Oct 2023. This stayed constant from the previous number of 0.134 NA for 23 Oct 2023. CN: Residential Mortgage Backed Security CPR Index data is updated daily, averaging 0.112 NA from Jan 2020 (Median) to 24 Oct 2023, with 949 observations. The data reached an all-time high of 0.215 NA in 12 Jun 2023 and a record low of 0.038 NA in 10 Apr 2020. CN: Residential Mortgage Backed Security CPR Index data remains active status in CEIC and is reported by National Interbank Funding Center. The data is categorized under China Premium Database’s Money Market, Interest Rate, Yield and Exchange Rate – Table CN.MC: National Interbank Funding Centre (NIFC): RMBS CPR Index.