The global Agency MBS market is poised for substantial growth over the coming decade, reflecting its critical role in the Banking, Financial Services & Insurance industry, specifically within the Financial Services & Retail child category. Market Intelo’s latest research indicates the Agency MBS market was valued at USD 850 billion in 2024 and is projected to expand to USD 1.8 trillion by 2033, registering a CAGR of 8.5% during the forecast period. This growth is fueled by increasing mortgage-backed securities issuance and expanding investment demand from institutional and retail investors.
Get Sample Report of Agency MBS Market @ marketintelo.com/request-sample/42549
Market Overview and Growth Drivers
Agency mortgage-backed securities (MBS) are debt instruments backed by pools of mortgages guaranteed by U.S. government-sponsored entities such as Fannie Mae, Freddie Mac, and Ginnie Mae. The appeal of Agency MBS lies in their relatively lower risk profile and liquidity, attracting a wide spectrum of investors from institutional asset managers to retail investors. Market Intelo’s report highlights key drivers propelling market growth:
Rising homeownership rates and mortgage origination volumes in major economies.
Government policies aimed at promoting affordable housing finance.
Increased demand for secure, income-generating investment products amid fluctuating interest rates.
Innovations in securitization techniques improving transparency and investor confidence.
Get Sample Report of Agency MBS Market @ marketintelo.com/request-sample/42549
Market Segmentation and Analysis
The Agency MBS market segmentation by type, investor category, and geography provides valuable insights into demand patterns and growth opportunities.
By Type
Pass-Through Securities: The largest segment in 2024, accounting for nearly 60% of total market value, offering direct cash flow from mortgage pools to investors.
Collateralized Mortgage Obligations (CMOs): Expected to grow at a faster pace due to their structured tranches appealing to diverse risk appetites and investment horizons.
By Investor Category
Institutional investors dominate the market, contributing approximately 75% of the Agency MBS holdings in 2024, including pension funds, insurance companies, and mutual funds. The retail segment is gradually expanding, driven by increased accessibility through mutual funds and ETFs.
Regional Insights
North America holds the majority share of 68% in 2024, supported by the mature mortgage market in the United States and the prominence of government-sponsored entities issuing Agency MBS. Europe and Asia-Pacific regions are exhibiting growing interest, with emerging markets adopting securitization models to boost financial markets and diversify investment portfolios.
Read Full Research Study: marketintelo.com/report/agency-mbs-market
Market Trends and Strategic Developments
Recent trends shaping the Agency MBS market include:
Enhanced risk management practices, leveraging big data and AI to assess mortgage pool quality.
Expansion of green and sustainable mortgage-backed securities reflecting environmental, social, and governance (ESG) considerations.
Integration of blockchain technology for improved transparency, settlement efficiency, and fraud reduction.
Regulatory reforms improving investor protections and market stability.
Future Outlook and Market Forecast
Market Intelo forecasts steady growth for Agency MBS, reaching USD 1.8 trillion by 2033 with a CAGR of 8.5%. Factors such as sustained demand for fixed-income instruments, expanding mortgage origination, and evolving investor preferences will underpin this growth. The increasing participation of retail investors and technological innovation are expected to further diversify the investor base and enhance market resilience.
Conclusion
The Agency MBS market remains a cornerstone of the Financial Services & Retail segment within the Banking, Financial Services & Insurance sector. Market Intelo’s comprehensive analysis confirms that the combination of government backing, robust investor demand, and ongoing innovation will continue to drive substantial market expansion through 2033. Stakeholders across mortgage lenders, asset managers, and financial institutions should align strategies to capitalize on these evolving market dynamics.
Related Report
marketintelo.com/report/utg-cover-material-for-foldables-market
marketintelo.com/report/bioimpedance-body-composition-ic-market
marketintelo.com/report/on-device-speech-recognition-soc-market
marketintelo.com/report/rechargeable-hearing-aid-battery-market
marketintelo.com/report/garage-door-opener-control-board-market
marketintelo.com/report/frozen-chocolate-covered-bananas-market
marketintelo.com/report/frozen-sweet-potato-waffle-fries-market
marketintelo.com/report/frozen-peking-duck-pancakes-kits-market
marketintelo.com/report/frozen-gyoza-assortment-platters-market
marketintelo.com/report/frozen-mediterranean-grain-bowls-market
marketintelo.com/report/recyclable-frozen-food-packaging-market
marketintelo.com/report/frozen-food-fulfillment-services-market
marketintelo.com/report/convenience-store-prepared-foods-market
marketintelo.com/report/convenience-store-hot-case-meals-market
marketintelo.com/report/frozen-sausage-and-peppers-meals-market
marketintelo.com/report/frozen-mac-and-cheese-with-bacon-market
marketintelo.com/report/frozen-cajun-chicken-pasta-meals-market
marketintelo.com/report/high-protein-ready-to-heat-bowls-market
marketintelo.com/report/frozen-cheese-filled-breadsticks-market
marketintelo.com/report/frozen-dairy-free-soft-serve-mix-market