What are the determinants of mortgage credit supply and demand?

We know that supply and demand of a product or a service are affected from some factors. This is also viable for mortgage credits, but there are some differences for mortgage credits.

Supply determinants for mortgage credits

  • expected inflation
  • risk-free rates
  • withdrawing risk for bank
  • interest rate risk for bank
  • prepayment risk

Demand determinants for mortgage credits

  • income
  • population
  • interest rates
  • age average (young population)
  • household structure
  • society structure
  • rents
  • consumer preferences