dc.description.abstract | Mortgage lending is an important mechanism for increasing financial development, financial stability, and financial inclusion in emerging economies at the same time, providing that the development of housing price bubbles can be avoided. Mortgage as a tool reduces level of risk and interest rate in the economy and enhances positive economic growth. The objective of this study is to examine the effect of interest rates and economic growth on mortgage uptake in banking institutions in Kenya. The study adopted a quantitative research design. The population of this study consisted of the 44 banking institutions, which offer mortgage financing in Kenya comprising of 43 commercial banks, and one-mortgage finance institutions. Data for this study was collected from secondary sources. Secondary data on mortgage interest rates and mortgage uptake in banking institutions in Kenya was retrieved from the Central Bank of Kenya banking supervision reports. Secondary data on economic growth was retrieved from the Kenya National Bureau of Statistics for a period of 10 years from 2006 – 2015. The data collected was coded using Microsoft Excel and the computer based Statistical Package for Social Sciences and then analyzed using regression and correlation analysis. The study findings found an insignificant positive relationship between mortgage interest rates, economic performance inflation and mortgage uptake but a negative and insignificant relationship between credit risk and mortgage uptake while money supply had a positive and significant relationship with mortgage uptake in banking institutions in Kenya. The study concludes that there is a direct relationship between mortgage interest rates, economic performance and inflation in banking institutions in Kenya and that credit risk has an inverse effect on mortgage uptake. The study also concluded that money supply has a direct relationship with mortgage uptake. | en_US |