Economy, Business And Markets

Housing Loan-Backed Securities

Housing Loan-Backed SecuritiesHousing Loan-Backed Securities

Housing loan-backed securities, which have been steadily getting more expensive during the past eight months, are expected to witness a balance between supply and demand. During autumn, a time when the real-estate market generally ebbs away, a marked drop is expected in demand for the housing loan-backed securities. Securities prices started to soar after the ceiling for housing loans was raised in January to 350,000,000 rials ($13,158), from the previous 200,000,000 rials. Prior to January this year, Bank Maskan which is responsible for providing mortgages, used to issue an average of 3.17 trillion rials ($119 million) worth of securities every month while the average demand was 1.92 trillion rials ($72.1 million) per month. Since January, there has been a sharp increase in demand for these kinds of securities reaching 5.6 trillion rials ($210 million).