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.

Graph and download economic data for Rest of the World; U.S. Mortgage-Backed Securities and Other U.S. Asset-Backed Bonds; Asset, Market Value Levels (BOGZ1LM263063603Q) from Q4 1945 to Q2 2025 about asset-backed, mortgage-backed, market value, bonds, securities, assets, and USA.

The Mortgage Backed Securities Market report segments the industry into By Type (Commercial MBS, Residental MBS), By Issuer (Government Sponsored Enterprises (GSEs), Government Agencies, Private Financial Institutions), and By Geography (North America, Europe, Asia Pacific, South America, Middle East). This report offers five years of historical data and five-year forecasts.

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.

Mortgage-Backed Securities Market Outlook

According to our latest research, the global Mortgage-Backed Securities (MBS) market size reached USD 12.8 trillion in 2024, with a compound annual growth rate (CAGR) of 5.1% from 2025 to 2033. The market is expected to grow steadily, reaching a forecasted value of USD 20.1 trillion by 2033, driven by increasing demand for diversified investment instruments, ongoing government support for housing finance, and the robust expansion of secondary mortgage markets worldwide. This growth reflects a combination of strong investor appetite for fixed-income assets and continued innovation in securitization structures, as per our most recent research findings.

A major growth factor shaping the Mortgage-Backed Securities market is the persistent global demand for yield-generating assets in a low-interest-rate environment. Institutional investors, such as pension funds and insurance companies, are increasingly allocating capital to MBS products to secure stable, long-term returns. This trend is further amplified by the relative stability of mortgage payments compared to other forms of debt, making MBS an attractive asset class for risk-averse investors. Additionally, the standardization and transparency of MBS structures have improved significantly over the past decade, restoring investor confidence and facilitating greater market participation. The integration of advanced analytics and risk management tools has also played a crucial role in enhancing the assessment of underlying mortgage pools, thereby reducing perceived risk and encouraging further investment.

Technological advancements and regulatory reforms have also been pivotal in accelerating the growth of the Mortgage-Backed Securities market. The adoption of blockchain, artificial intelligence, and big data analytics in the securitization process has led to improved efficiency, transparency, and accuracy in the origination and servicing of mortgage loans. These innovations have enabled market participants to better manage credit risk, streamline due diligence, and enhance the overall liquidity of MBS instruments. Furthermore, post-2008 regulatory measures, such as the implementation of Basel III and Dodd-Frank Act provisions, have strengthened the resilience of the MBS ecosystem by introducing stricter capital requirements and greater transparency. These measures have not only mitigated systemic risks but also attracted a broader spectrum of investors, including those previously wary of mortgage-backed instruments.

Global macroeconomic trends, including urbanization, rising homeownership rates, and expanding real estate markets, are fueling the underlying mortgage origination volumes that support the MBS market. Emerging economies, particularly in Asia Pacific and Latin America, are witnessing rapid growth in residential and commercial property markets, creating new opportunities for the securitization of mortgage assets. In developed markets such as North America and Europe, the ongoing evolution of housing finance systems and increased government intervention through agencies like Fannie Mae, Freddie Mac, and the European Central Bank have provided further impetus to MBS issuance. This sustained growth in mortgage origination and securitization activity is expected to underpin the long-term expansion of the global MBS market.

Regionally, North America continues to dominate the Mortgage-Backed Securities market, accounting for the largest share due to its mature housing finance infrastructure and the presence of prominent government-sponsored enterprises. However, Europe and Asia Pacific are rapidly gaining traction, propelled by regulatory harmonization, financial innovation, and the increasing involvement of private institutions. In Latin America and the Middle East & Africa, the market is at a nascent stage but is projected to grow at a faster pace over the coming years, supported by financial sector reforms and rising demand for alternative investment products. This regional diversification is expected to further enhance the stability and resilience of the global MBS market.

Security Type Analysis

The Mortgage-Backed Securities market is segmented by security type into Residential MBS, Commercial MBS, Collateralized Mortgage Obligations (CMOs), and Others. Among these, Residential Mortgage-Backed Securities (RMBS) represent the largest segment, driven by the sheer volume of residential

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.

Commercial Mortgage-Backed Securities (CMBS) Market Outlook

As per our latest research, the global Commercial Mortgage-Backed Securities (CMBS) market size was valued at USD 1.23 trillion in 2024, demonstrating the robust scale of this critical segment within the structured finance landscape. The market is forecasted to reach USD 1.88 trillion by 2033, growing at a compound annual growth rate (CAGR) of 4.8% during the period from 2025 to 2033. This steady expansion is primarily driven by rising demand for diversified investment products, greater liquidity in commercial real estate financing, and evolving risk management strategies among institutional investors. The CMBS market continues to underpin commercial real estate growth by enabling capital flow and risk dispersion, making it a pivotal component of global financial markets.

One of the primary growth factors for the CMBS market is the increasing appetite for alternative investment vehicles among institutional investors. As traditional fixed-income yields remain compressed in many developed economies, CMBS instruments offer attractive risk-adjusted returns, particularly for pension funds, insurance companies, and asset managers seeking to diversify portfolios. Furthermore, the ability of CMBS to pool a broad array of commercial real estate loans—spanning office, retail, industrial, multifamily, and hospitality properties—enables investors to gain exposure to real estate assets without the complexities of direct property ownership. This structural advantage has spurred continued issuance activity and secondary market trading, reinforcing the market’s role as a cornerstone of commercial real estate finance.

Technological advancements and regulatory reforms have further bolstered the CMBS market’s growth trajectory. Innovations in data analytics, risk modeling, and loan servicing platforms have enhanced transparency, underwriting accuracy, and investor confidence. Meanwhile, regulatory frameworks—such as risk retention rules and enhanced disclosure requirements—have improved the overall quality of CMBS issuances and aligned issuer incentives with investor interests. These developments have helped mitigate some of the reputational risks associated with structured finance products, particularly in the aftermath of the global financial crisis, and have encouraged renewed participation from both issuers and investors.

Macroeconomic stability and favorable commercial real estate fundamentals have also played a significant role in supporting the expansion of the CMBS market. Sustained economic growth, low interest rates, and strong demand for office, industrial, and multifamily properties have led to an uptick in commercial mortgage originations, which in turn fuel CMBS issuance volumes. Additionally, the ongoing evolution of work, retail, and living patterns—accelerated by digital transformation and demographic shifts—has created new opportunities for property owners and investors to capitalize on emerging trends, such as flexible office spaces, last-mile logistics, and urban multifamily developments. These factors collectively underpin the resilience and adaptability of the CMBS market in a dynamic global environment.

From a regional perspective, North America remains the dominant force in the global CMBS market, accounting for the largest share of issuance and outstanding securities. However, significant growth opportunities are emerging in Europe and Asia Pacific, driven by increasing institutionalization of real estate markets, evolving regulatory frameworks, and rising investor demand for diversified credit products. While market maturity and regulatory harmonization continue to vary across regions, the globalization of commercial real estate investment and the search for yield are expected to drive further expansion and integration of CMBS markets worldwide.

Security Type Analysis

The security type segment of the Commercial Mortgage-Backed Securities market is primarily categorized into conduit, single-asset/single-borrower (SASB), and large loan CMBS. Conduit CMBS remains the most prevalent structure, characterized by the pooling of numerous small- to mid-sized commercial mortgage loans from various borrowers and property types. This structure offers significant diversification benefits, reducing idiosyncr

Graph and download economic data for Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks (TMBACBW027SBOG) from 2009-07-01 to 2025-09-24 about mortgage-backed, agency, Treasury, securities, banks, depository institutions, and USA.

Residential Mortgage-Backed Securities (RMBS) Market Outlook

According to our latest research, the global Residential Mortgage-Backed Securities (RMBS) market size reached USD 2.38 trillion in 2024, demonstrating robust activity across primary and secondary markets. The RMBS market is expected to expand at a CAGR of 6.1% during the forecast period, with the total market value projected to reach USD 4.06 trillion by 2033. Key growth drivers include ongoing demand for housing finance, the resurgence of securitization activity in developed economies, and evolving investor appetite for diversified fixed-income products.

The growth trajectory of the RMBS market is fundamentally underpinned by the sustained demand for residential mortgage loans globally. As homeownership remains a core aspiration in both developed and emerging economies, financial institutions continue to originate large volumes of residential mortgages. Securitizing these loans into RMBS allows lenders to recycle capital, manage risk exposure, and meet regulatory requirements. Additionally, the low-interest-rate environment seen in many regions during the last decade has spurred refinancing activity and increased the volume of eligible mortgages for securitization. These macroeconomic factors, coupled with supportive government policies in several key markets, have contributed to the steady expansion of the RMBS landscape.

Another significant growth factor is the rising sophistication and risk appetite among institutional investors. With traditional fixed-income yields remaining compressed, RMBS offer an attractive risk-return profile, particularly for pension funds, insurance companies, and asset managers seeking higher yields without exposing themselves to excessive credit risk. The development of advanced credit rating methodologies and enhanced transparency in RMBS structures have further bolstered investor confidence. Moreover, the diversification of RMBS products, including the expansion of non-agency RMBS and the inclusion of green and social housing mortgages, is broadening the investor base and driving incremental demand in global capital markets.

Technological advancements and regulatory reforms are also shaping the RMBS marketÂ’s growth. Automation in loan origination, servicing, and securitization processes has improved operational efficiency and reduced transaction costs. Simultaneously, regulatory bodies have implemented stricter disclosure and risk retention requirements post-2008, enhancing the resilience and credibility of the market. These measures have not only restored investor trust but have also attracted new participants, including non-bank financial institutions and fintech platforms. As a result, the RMBS market is witnessing heightened innovation in structuring and distribution, further fueling its upward momentum.

Regionally, North America continues to dominate the RMBS market, accounting for the largest share due to the sheer scale of the U.S. mortgage industry and the presence of government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. Europe is also witnessing renewed activity, particularly in the UK and Germany, as regulatory clarity and investor confidence return. Meanwhile, the Asia Pacific region is emerging as a high-growth market, driven by rapid urbanization, expanding middle-class populations, and increasing mortgage penetration in countries such as China, Australia, and Japan. Latin America and the Middle East & Africa, while smaller in scale, are showing promising signs of growth as financial systems mature and housing finance markets develop.

In parallel to the Residential Mortgage-Backed Securities market, the Commercial Mortgage-Backed Securities (CMBS) sector is also experiencing notable growth. CMBS are securities backed by commercial real estate loans, and they play a crucial role in providing liquidity to the commercial real estate market. This market is driven by the demand for financing in sectors such as office spaces, retail centers, and industrial properties. As economies recover and commercial real estate markets stabilize, the CMBS market is expected to see increased issuance and investor interest. The diversification of commercial property types and the development of innovative financing structures are further enhancing the attractiveness of CMBS to

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.

Global Mortgage Backed Security market size 2025 was XX Million. Mortgage Backed Security Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Global Asset-Backed Securities market size is expected to reach $3359.9 billion by 2029 at 6.7%, rising real estate activities fueling growth in the asset-backed securities market

Agency MBS Market Outlook

According to our latest research, the global Agency MBS (Mortgage-Backed Securities) market size reached USD 9.3 trillion in 2024, reflecting the robust demand for securitized mortgage assets worldwide. The Agency MBS market is expected to expand at a CAGR of 4.2% from 2025 to 2033, with the market forecasted to reach USD 13.3 trillion by 2033. This growth is driven by the increasing appetite for fixed-income securities among institutional investors, ongoing government support for housing finance, and the evolution of risk management strategies in the global financial ecosystem.

One of the primary growth factors for the Agency MBS market is the consistent demand for safe, liquid, and yield-generating assets in a low-interest-rate environment. Agency MBS, backed by government-sponsored enterprises (GSEs) such as Fannie Mae, Freddie Mac, and Ginnie Mae, offer investors a unique blend of credit risk mitigation and attractive returns compared to other fixed-income instruments. The explicit or implicit government guarantee associated with these securities further enhances their appeal, particularly during periods of economic uncertainty. Additionally, the expansion of mortgage lending and refinancing activity, especially in developed markets, has fueled the supply of new Agency MBS, supporting market growth.

Another significant driver is the evolving regulatory landscape that encourages financial institutions to hold high-quality liquid assets (HQLA) for capital adequacy and risk management purposes. Agency MBS are typically classified as HQLA under Basel III regulations, making them a preferred choice for banks and other financial institutions seeking to optimize their balance sheets. Moreover, technological advancements in securitization, data analytics, and trading platforms have improved transparency, efficiency, and accessibility in the Agency MBS market, attracting a broader range of investors, including retail participants and non-traditional asset managers.

The diversification of investor profiles and the globalization of capital flows have also contributed to the expansion of the Agency MBS market. International investors, sovereign wealth funds, and central banks are increasingly allocating capital to Agency MBS as part of their portfolio diversification and risk-adjusted return strategies. This influx of global capital has enhanced market liquidity and depth, while also fostering innovation in product structures and risk transfer mechanisms. Furthermore, the growing recognition of Agency MBS as a tool for macroprudential policy and monetary operations by central banks underscores their strategic importance in the global financial system.

From a regional perspective, North America continues to dominate the Agency MBS market, accounting for the majority of issuance, trading volume, and investor participation. The United States, in particular, benefits from a mature mortgage finance system, strong regulatory oversight, and the presence of major GSEs. However, other regions such as Europe and Asia Pacific are witnessing steady growth, driven by financial market development, regulatory harmonization, and increasing cross-border investment flows. The regional dynamics are further influenced by macroeconomic factors, housing market trends, and government policies aimed at supporting homeownership and financial stability.

Product Type Analysis

The Agency MBS market is segmented by product type into Residential MBS, Commercial MBS, Collateralized Mortgage Obligations (CMOs), and Pass-Through Securities. Residential MBS remain the largest segment, underpinned by the substantial volume of residential mortgage loans originated and securitized by GSEs. These securities are widely regarded as a cornerstone of the fixed-income market, providing investors with exposure to the U.S. housing market and a steady stream of principal and interest payments. The standardized nature and government backing of residential MBS contribute to their high liquidity and low credit risk profile, making them a staple in institutional portfolios.

Commercial MBS, while smaller in scale compared to their residential counterparts, have gained prominence as institutional investors seek diversification across property types and geographic locations. These securities are backed by income-generating commercial real estate assets such as office buildings, shopping centers

Graph and download economic data for Assets: Securities Held Outright: Mortgage-Backed Securities: Wednesday Level (WSHOMCB) from 2002-12-18 to 2025-10-01 about outright, mortgage-backed, securities, assets, and USA.

Global Mortgage Backed Security is segmented by Application (Finance, Real Estate, Investment, Government, Mortgage Lenders), Type (Residential MBS, Commercial MBS, Agency MBS, Non-Agency MBS, Collateralized Mortgage Obligations) and Geography(North America, LATAM, West Europe, Central & Eastern Europe, Northern Europe, Southern Europe, East Asia, Southeast Asia, South Asia, Central Asia, Oceania, MEA)

In 2024, Market Research Intellect valued the Mortgage-Backed Security Market Report at USD 12 trillion, with expectations to reach USD 15 trillion by 2033 at a CAGR of 3.1%.Understand drivers of market demand, strategic innovations, and the role of top competitors.

Graph and download economic data for Agency-and GSE-Backed Mortgage Pools; Total Mortgages; Asset, Level (AGSEBMPTCMAHDFS) from Q4 1945 to Q2 2025 about GSE, credit market, agency, mortgage, sector, financial, domestic, assets, and USA.

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"

Global Asset Backed Securities is segmented by Application (Financial Services, Real Estate, Consumer Goods, Investment, Banking), Type (Mortgage-Backed Securities (MBS), Asset-Backed Securities (ABS), Collateralized Debt Obligations (CDOs), Commercial Mortgage-Backed Securities (CMBS), Auto Loan-Backed Securities) and Geography(North America, LATAM, West Europe, Central & Eastern Europe, Northern Europe, Southern Europe, East Asia, Southeast Asia, South Asia, Central Asia, Oceania, MEA)

Non-Agency MBS Market Outlook

According to our latest research, the global Non-Agency MBS market size reached USD 1,243.7 billion in 2024, demonstrating robust momentum with a compound annual growth rate (CAGR) of 6.1% from 2025 to 2033. The market is forecasted to reach USD 2,116.5 billion by 2033, driven by increasing investor appetite for higher-yielding fixed-income assets and the growing sophistication in risk management strategies. This growth is underpinned by evolving regulatory frameworks, technological advancements in securitization, and the ongoing search for yield in a persistently low-interest-rate environment.

A primary growth factor for the Non-Agency MBS market is the rising demand for alternative investment vehicles among institutional and retail investors. As traditional government-backed securities yield lower returns in the current macroeconomic climate, investors are turning toward Non-Agency MBS to diversify their portfolios and achieve better risk-adjusted returns. The market benefits from a broadening investor base, including pension funds, insurance companies, and asset managers, who are attracted by the asset class’s ability to deliver higher yields relative to agency-backed securities. Furthermore, the inclusion of advanced credit risk modeling and analytics has enhanced investor confidence by providing greater transparency into underlying asset pools, thereby mitigating perceived risks and supporting market expansion.

Another significant driver is the increasing sophistication of securitization structures and the growing role of private institutions and investment banks in originating and structuring Non-Agency MBS. These entities have leveraged technology to streamline the securitization process, reduce costs, and improve the granularity of risk assessment. Innovations such as machine learning and big data analytics are enabling more accurate credit scoring and default prediction, which in turn enhances the attractiveness of Non-Agency MBS to a wider spectrum of investors. The market is also benefiting from the resurgence of the real estate sector, as both residential and commercial property markets recover and expand post-pandemic, providing a steady flow of new assets for securitization.

Regulatory developments play a crucial role in shaping the Non-Agency MBS market landscape. In recent years, regulatory authorities in major markets have implemented measures to enhance transparency, improve disclosure standards, and ensure robust risk retention practices. These changes have increased investor trust in Non-Agency MBS products, encouraging greater participation and liquidity. In addition, global efforts to harmonize securitization regulations are expected to facilitate cross-border investment and foster the development of a more integrated and resilient market. However, compliance with evolving regulatory requirements also necessitates ongoing investments in technology and expertise by market participants.

From a regional perspective, North America continues to command the largest share of the Non-Agency MBS market, accounting for over 58% of global issuance in 2024. The region’s dominance is attributed to its mature capital markets, deep investor base, and a well-established securitization infrastructure. Europe is witnessing a steady uptick in Non-Agency MBS activity, supported by regulatory reforms and renewed investor interest in structured finance products. Meanwhile, Asia Pacific is emerging as a high-growth market, propelled by rapid urbanization, expanding mortgage markets, and increasing involvement of regional financial institutions in securitization. Latin America and the Middle East & Africa, while smaller in scale, are also displaying signs of growth as local capital markets develop and regulatory frameworks evolve to support securitized products.

Product Type Analysis

The Non-Agency MBS market is segmented by product type into Residential Non-Agency MBS and Commercial Non-Agency MBS, each exhibiting distinct growth patterns and risk profiles. Residential Non-Agency MBS, which include securities backed by non-conforming residential mortgages, represent the largest segment, driven by strong demand from both institutional and retail investors seeking exposure to the housing market without the constraints of government-sponsored enterprise (GSE) underwriting standards. The segment benefits from a diversified pool of underlying assets, encompassing a wide rang