Housing finance represents approximately 18% of total consumer financing in Pakistan. With outstanding (net of NPLs) at Rs.73.60 billion as on September 30, 2008, the housing finance sector has reported a growth of 2% during last twelve months, albeit, reflective of a slowing tend. This slowing growth is primarily attributed to an increase in interest rates and tight monetary policy that has led to an overall squeeze in the private sector credit growth.  However, the number of banks entering the mortgage market is increasing over time which is a sign of increasing competition and outreach. Analyzing the performance of banking sector, Islamic banks have shown resilient growth with its share in total outstanding reported an increase, from 7.6% (September 2007) to 12% (September 2008). The overall market share of commercial banks (excluding DFIs) has increased from almost 81% to 85% since quarter ended September 2007.