Journal of Finance and Accounting
Volume 3, Issue 4, July 2015, Pages: 77-85
Received: May 28, 2015;
Accepted: Jun. 6, 2015;
Published: Jun. 25, 2015
Views 4452 Downloads 261
Ariemba Jared Mogaka, School of Business and Economics, South Eastern Kenya University, Kitui, Kenya
Kiweu Josephat Mboya, School of Management and Commerce, Strathmore University, Nairobi, Kenya
Riro George Kamau, School of Business Management and Economics, Dedan Kimathi University of Technology, Nyeri, Kenya
This study examines the influence of macro-economic variables on the growth of the mortgage market in Kenya. Panel data is collected for a 30 year period, from 1984 to 2013 on the outstanding Real Estate Loan Portfolio as the dependent variable and the macro-economic variables of Average Yearly Inflation Rate, Average Yearly GDP growth Rate, Average Yearly Exchange Rate, Percentage Informal Sector Employment, Treasury bill rate and National Savings Rate as the predictor variables. Regression Analysis was used and the study found no evidence of significant influence of inflation, average GDP growth rate, Treasury bill rate and national savings rate on total real estate loan portfolio. However, the study finds evidence of relationship between informal sector employment, the per capita income and exchange rate. However, the model showed that 81% of the variation in the dependent variable could be explained by the predictor variables.
Ariemba Jared Mogaka,
Kiweu Josephat Mboya,
Riro George Kamau,
The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya, Journal of Finance and Accounting.
Vol. 3, No. 4,
2015, pp. 77-85.
Akinwunmi, A. (2009). An Investigation into Factors Affecting Mortgage credit Supply in Emerging Economies: A Case Study of Nigeria. PhD thesis, University of Wolverhampton.
Arcelus, F. & Meltzer, A. H. (1973b).The Markets for Housing and Housing Services: Reply. Journal of Money, Credit and Banking, 5(4): 973-978.
Bandyopadhyay, A. and Saha, A. (2009).Factors driving Demand and Default Risk in Residential Housing Loans: Indian Evidence. MPRA Paper No. 14352.
Beck, T., Maimbo, S. M., Faye, I., & Triki, T. (2011). Financing Africa: through the crisis and beyond. World Bank Publications.
Boamah N.A. (2009). “Secondary Mortgage Market (SMM): Is it Right for Financing Housing in Ghana?”.Journal of Science and Technology, Vol.29, No. 1.
Boleat, M. (2003).Regulation of Mortgage Lending Institutions. Housing and Finance International, 18(1), 3.
Butler, S., Kravova, M. & Safavian, M. (2009). Mortgage registration and foreclosure around the globe: Evidence from 42 Countries. Mortgage credit International, June (2009), pp.19-29.
CBK. (2010). Mortgage Finance in Kenya: Survey analysis.
CBK. (2012). Developments in the Kenyan Banking Sector for the Quarter Ended 30th June 2012.
CBK. (2013). Banking Sector Developments Report
Chiquier, L., Hassler, O and Lea, M. (2004) Mortgage Securities in Emerging Markets. The World Bank.
Coakes, S. J., Steed, L., and Price, J. (2008). SPSS Version 15.0 for Windows: Analysis without Anguish. John Wiley & Sons Australia Ltd.
Demir, H., Kurt, V. and Çagdas, V., (2003) “Housing Finance in Turkey” 2nd FIG Regional Conference, Marrakesh, Morrocco, 2-5 December 2003.
Femi, P.J., (2013). Developing the Mortgage Sector in Nigeria through the provision of Long-term Finance: An efficiency perspective. Cranfield University, DBA Thesis
Fisher, E. M. (1933). Housing Problems. The Quarterly Journal of Economics, 48(1): 129-149. The MIT Press.
Gelfand, J. E. (1970). Mortgage Credit and Lower-Middle Income Housing Demand. Land Economics, 46(2): 163-170. Published by: University of Wisconsin Press.
Green, R. K. and Wachter, S. M. (2005).The American Mortgage in Historical and International Context. The Journal of Economic Perspectives, 19(4): 93-114.
R. Glenn Hubbard and Christopher J. Mayer (2009). The Mortgage Market Meltdown and House Prices, The B.E. Journal of Economic Analysis & Policy: Vol. 9: Iss. 3
Huybens, E. and Smith, B. (1998) Financial market frictions, monetary policy, and capital accumulation in a small open economy, Journal of Economic Theory, 81, pp. 353–400.
IDB (2005) Unlocking Credit: The Quest for Deep and Stable Bank Lending. The Johns Hopkins University Press Washington, D.C.
Jaffe, D. M, and Renaud, B. (1996).Strategies to develop markets in transition economies. World Bank Policy Research Working Paper 1697.
Levine, R. (1997). Financial development and economic growth. Views and agenda of Economic Literature, 35 (2), 688-726.
Lwali, K. (2008). Challenges of International Housing Finance Institutions; a case of Shelter Afrique. Unpublished MBA project University Of Nairobi.
Mugambe, P. (2009). Access to Mortgage credit by Urban Middle-low Income Salary Earners in Kampala City, Uganda, Masters Thesis, Erasmus University.
Quigley, J. M. and Raphael, S. (2004). “Is Housing Unaffordable? Why Isn't It More Affordable?” The Journal of Economic Perspectives, 18(1); 191-214.
Saleh, I. (1999) “Housing Market Dynamics in the Metropolitan Area: A Case Study of the Informal Housing Markets in the Metropolitan Jabotabek, Indonesia,” University of Pennsylvania, Electronic Dissertations. http://repository.upenn.edu/dissertationsaccessed on 17th July 2014
The World Bank.(2012) Financial Sector Assessment Program Development Module Mongolia Housing Finance Technical Note.
Walley, S., Badev, A., Beck, T., and Vado, L. (2013) Housing Finance across Countries: New Data and Analysis. http://ssrn.com/abstract=2336126.accessed on 20th April 2014
Warnock, V. C. & Warnock, F. E. (2008).Markets and Housing Finance. Journal of Housing Economics, Vol. 17, No. 3, pp. 239-251. Washington, D.C.
Wichura, M.J. (2006). The coordinate-free approach to linear models; Cambridge Series in Statistical and Probabilistic Mathematics. Cambridge: Cambridge University Press.
Wilcox, R. (2005). Introduction to robust estimation and hypothesis testing. Academic Press.