A magnetoresistance effect element is composed of a substrate, and a layer lamination structure disposed on the substrate and comprising a buffer layer, an anti-ferromagnetic layer, a pinned layer, an insulating layer including at least one nano-contact portion having a dimension of not more than Fermi length, a free layer composed of a ferromagnetic layer and a domain stability layer, which are laminated in the described order on the substrate. The pinned layer is composed of a first ferromagnetic layer, a non-magnetic layer and a second ferromagnetic layer disposed in this order on the side of the anti-ferromagnetic layer, and the domain stability control including a non-magnetic layer, a ferromagnetic layer and an anti-ferromagnetic layer disposed in this order from the side of the free layer.