Black Americans have lower homeownership rates compared to other races and are more likely to be offered pricier mortgages, according to a Realtor.com analysis of 2018 and 2019 purchase mortgage data. In predominantly Black communities, homebuyers are given interest rates 13 basis points higher than predominantly White communities. This difference adds about $43 to monthly mortgage payments on average. These higher costs are in part a result of systemic racism which creates higher unemployment and poverty rates in Black communities, says Realtor.com. Other factors, such as the absence of local lenders offering competitive rates in communities of color, add to this difference.
The American dream of homeownership is something that millions aspire to achieve, a gold standard for success. It has catapulted generations into the middle class, as owners have reaped the rewards of rising real estate prices. But that dream has proved elusive for countless people of color.
As the nation grapples with the legacy of systemic racism, it's forced many to take a harder look at the racism embedded in the housing industry.
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