The influence of macroeconomic factors on the mortgage market in Kenya
Kamata, Marvin Ng’ang’a
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The paper tries to study the relationship between the value of the mortgage market and key macroeconomic factors namely, Exchange rates, Inflation and GDP per capita. The real estate sector in the country is booming and is one of those industries that thrive in the country. As such, trying to further understand the factors that affect mortgages in the country is of great importance. After the model estimation, it is found that GDP per capita and exchange rates are significant in the model in explaining the variation in mortgage market value. It is also found that they have a positive relationship with mortgage market value. It is however found that inflation is not significant in the Kenyan context in explaining the variation in the mortgage market value.