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
- interest rates
- age average (young population)
- household structure
- society structure
- consumer preferences