Puerto Rico Home Mortgage Finance Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | 1.50 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Puerto Rico Home Mortgage Finance Market Analysis
The Puerto Rico Home Mortgage Finance Market is expected to register a CAGR of greater than 1.5% during the forecast period(2024-2029).
Puerto Rico is still a part of the United States, even if it is not a state. Purchasing a home in Puerto Rico is quite comparable to doing so in the rest of the United States as a whole. Puerto Rican mortgage providers, such as regional credit unions and national banks, offer mortgages to homeowners.
Growth in the housing sector was severely hampered by the COVID-19 pandemic and was unlikely to pick up until the economy started to mend. Loan stress was expected to increase, especially for loans for affordable homes. The findings demonstrated that the pandemic's detrimental effects on the housing market were mostly shown in the volume and geography of house transactions, with little effect on housing prices.
Lending in Puerto Rico has become increasingly expensive, and, even though the real estate industry has not come to a grinding stop, it has significantly decreased its activity, with increments causing interest rates to be four or five percentage points higher than last year. Interest rates in 2022 were very different from interest rates in 2020 and 2021. Before, customers could get a mortgage at 3.5 percent. In 2022, a regular mortgage had a 7.5 percent interest rate. The impact of such hikes could cause a buyer who had been pre-qualified for a mortgage loan to lose his qualification from one week to the next. This is because higher interest rates also mean higher mortgage payments.
Puerto Rico Home Mortgage Finance Market Trends
Increase in Economic Growth and GDP per capita
Puerto Rico's economy was in a severe structural decline for more than ten years before it experienced a string of natural calamities, including hurricanes, earthquakes, and the COVID-19 pandemic beginning in 2017. Nearly half of the populace lived below the federal poverty level as a result of the Government's default on a large portion of its debt. Although there are many explanations for these issues, their roots go back 40 years.
By maximizing revenue collection and lowering government-wide spending, government efficiency measures aim to streamline and transform Puerto Rico's government to deliver essential services to the popular and business sector more effectively while ensuring the sustainability of those services over time given population trends. Such policy changes will have a short-term contractionary effect on the economy, but they are essential for long-term improvements in service delivery, budgetary sustainability, and government efficiency. Through FY2051, the combined effect of these two dynamics will continue to be quite favorable for fiscal reductions.
Rising FinTech Companies in Lending Space Drives the Market
Fintech, or technological innovation in financial operations, can open up the market for more financial services, boost efficiency and competitiveness, and lower prices and frictions.
Decentralized finance (Defi), which is a type of financial intermediation based on crypto assets, has grown by leaps and bounds in the last two years. This is because it has pushed innovation to a whole new level and may have made businesses more efficient and opened up new investment opportunities.Defi and conventional financial intermediaries are becoming more integrated. Even though its market is still small, unregulated Defi presents legal uncertainty as well as market, liquidity, and cyber concerns.
Policies that proportionally target incumbents and fintech companies are required. More stringent capital, liquidity, and operational risk-management standards for neobanks are preferred (at the entity and group levels), commensurate with their risks. Because incumbent banks' current business models might not be as long-lasting as those of more technologically sophisticated banks, prudential supervision may need to pay more attention to the soundness of these institutions.
Puerto Rico Home Mortgage Finance Industry Overview
The Puerto Rico home mortgage finance market is fragmented with domestic and foreign players. The players are occupying the established space in a fragmented market. A few of the well-known major players including Banco Popular, Oriental Financial Group, First Bank, etc. are dominating the market.
Puerto Rico Home Mortgage Finance Market Leaders
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Banco Popular
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Oriental Financial Group
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Scotiabank
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Banco Santander
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CITI Bank
*Disclaimer: Major Players sorted in no particular order
Puerto Rico Home Mortgage Finance Market News
- February 2023: Puerto Rico was expected to receive up to USD 109 million in funding under the State Small Business Credit Initiative (SSBCI) in President Biden's American Rescue Plan. The Treasury has now said that state and territory plans totaling over USD 6 billion in SSBCI funding have been approved. This is to help small businesses and entrepreneurs and make it easier to get access to capital.
- February 2023: The Consumer Financial Protection Bureau (CFPB) permanently banned RMK Financial Corporation, which does business as Majestic Home Loans, from the mortgage lending industry by prohibiting RMK from engaging in any mortgage lending activities or receiving remuneration from mortgage lending in Puerto Rico.
Puerto Rico Home Mortgage Finance Market Report - 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 DYNAMICS AND INSIGHTS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Insights on Various Regulatory Trends Shaping Home Finance Market
- 4.5 Insights on the impact of technology and innovation in Operation in Home Finance Market
- 4.6 Insights on Performance of Asset Managers
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4.7 Industry Attractiveness - Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Buyers
- 4.7.2 Bargaining Power of Suppliers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes
- 4.7.5 Intensity of Competitive Rivalry
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 Application
- 5.1.1 Home Purchase
- 5.1.2 Refinance
- 5.1.3 Home Improvement
- 5.1.4 Other Applications
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5.2 Providers
- 5.2.1 Banks
- 5.2.2 Housing Finance Companies
- 5.2.3 Real Estate Agents
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5.3 Interest Rates
- 5.3.1 Fixed Rate
- 5.3.2 Mortgage Loan
- 5.3.3 Adjustable Rate Mortgage Loan
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration & Overview
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6.2 Company Profiles
- 6.2.1 Banco Popular
- 6.2.2 Oriental Financial Group
- 6.2.3 Scotia Bank
- 6.2.4 Banco Santander
- 6.2.5 CITI Bank
- 6.2.6 Caribe Federal Credit Union
- 6.2.7 Fembi Mortgage
- 6.2.8 Pentagon Federal Credit Union
- 6.2.9 Jet Stream Federal Credit Union
- 6.2.10 First Bank*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
** Subject To AvailablityPuerto Rico Home Mortgage Finance Industry Segmentation
When a seller offers a loan to a customer so that they can buy something from them, they are talking about house financing.This allows the seller to avoid having to wait while the buyer's loan is processed and allows the buyer to spread out the payment over several months rather than all at once.
The Puerto Rico Home Mortgage Finance Market Is Segmented By Application (Home Purchase, Refinance, Home Improvement, And Other Applications), By Provider (Banks, Housing Finance Companies, And Real Estate Agents), And By Interest Rate (Fixed Rate Mortgage Loan And Adjustable Rate Mortgage Loan). The Report Offers Market Size And Forecasts For The Puerto Rico Home Mortgage Finance Market In Value (USD) For All The Above Segments.
| Application | Home Purchase |
| Refinance | |
| Home Improvement | |
| Other Applications | |
| Providers | Banks |
| Housing Finance Companies | |
| Real Estate Agents | |
| Interest Rates | Fixed Rate |
| Mortgage Loan | |
| Adjustable Rate Mortgage Loan |
Puerto Rico Home Mortgage Finance Market Research Faqs
What is the current Puerto Rico Home Mortgage Finance Market size?
The Puerto Rico Home Mortgage Finance Market is projected to register a CAGR of greater than 1.5% during the forecast period (2024-2029)
Who are the key players in Puerto Rico Home Mortgage Finance Market?
Banco Popular, Oriental Financial Group, Scotiabank, Banco Santander and CITI Bank are the major companies operating in the Puerto Rico Home Mortgage Finance Market.
What years does this Puerto Rico Home Mortgage Finance Market cover?
The report covers the Puerto Rico Home Mortgage Finance Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Puerto Rico Home Mortgage Finance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Puerto Rico Home Mortgage Finance Industry Report
Statistics for the 2024 Puerto Rico Home Mortgage Finance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Puerto Rico Home Mortgage Finance 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.
