Variability of Mortgage Interest Rates and Real Estate Growth in Kisumu Town Kenya
View/ Open
Date
2015-11Author
Mbogha, Isaac A
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The purpose of the study was to investigate the variability of mortgage interest rates
and real estate growth. The main problem of the study was the accessibility to
mortgage financing as it has been a major problem over the past and many real estate
developers have shied from taking up mortgages due to factors like high mortgage
interest rates. The main objective of the study was to establish the effect of variations
of mortgage interest rates on real estate growth in Kisumu town. The study is of great
significance as it could be used to provide background information to research
organization and scholars who would want to carry out further studies. The study
could also aid Kenyan government in understanding real estate as a fundamental
investment project. The study was done through the use of a triangulated research
design. The target population of this study comprised of all the 28 licensed
commercial banks operating within Kisumu town with major focus on the major 5
dealing with mortgage financing. The most appropriate method for this study was
stratified random sampling since the method entails grouping the population into
categories based on their varying characteristics. This study adopted secondary
sources. This was from the 28 registered financial institutions within the Kisumu
town. Secondary data was collected using the secondary data capture form. Data
analysis involved descriptive and inferential statistics and Statistical Package for
Social Sciences software were used in the analysis. The study concluded that there is
need for the researchers to consider many factors in regards variability of mortgage
interest rates as there exists minimal variability between the interest rates and
mortgage disbursement. The research further concluded that there existed little
information in regard to non -performing loans and also for the fourth year leading to
inadequate data hence, less credible analysis and therefore future analysis for at least
more years to give consistent and conclusive conclusion. The study suggested
exploitation of other variables like the economic factors so that mortgage uptake
challenge could be fully exhausted so that mortgage uptake troubles could be a
problem of the past and also the government should give subsidies and also limit high
interest rates to the people who are willing to take up mortgages and this could help in
real estate growth
Publisher
University of Nairobi