The Dominance of the U.S. 30-Year Fixed Rate Residential Mortgage

The United States (U.S.) is the only country in world which 30-year fixed rate residential mortgage dominant home product. After reviewing offerings from a sample of countries to contrast their differences U.S. market, key differential driving market active encouragement by government policy. This reinforcing promotion provided and “quasi” institutions that guarantee after-market. coupled with vast securitization mortgages require standardization underlying product (of largest sector) contributes this dominance. Thus securitization, allows lenders offset interest prepayment risks buyers these securitized products, further drives demand for more offerings.