Currently Reading

Higher Fees, Interest Rates, and Mortgage Rejections for Black, Hispanic Buyers

Advertisement
Demographics

Higher Fees, Interest Rates, and Mortgage Rejections for Black, Hispanic Buyers


February 23, 2021
Loan application rejection
Photo: relif

Despite having similar financial situations, Black and Hispanic homebuyers are more likely to be denied mortgages compared to White buyers, according to Realtor.com’s analysis of 2019 mortgage data. When able to receive a mortgage, Black and Hispanic borrowers are more likely to pay higher fees and interest rates. The rate for mortgage application rejection for Black applicants is double that of a White applicant, Realtor.com found. According to the analysis of 7.2 million loan applications, Black applicants are rejected 11.7% of the time while White applicants are rejected 5.5% of the time.

Black buyers were twice as likely to be refused mortgages than whites, according to the realtor.com analysis of 7.2 million loan applications in 2019. Only about 5.5% of whites had their loan applications rejected, compared with 6.8% of Asians, 9.3% of Hispanics, 11.7% of Blacks, and 10.8% of multi-minority race individuals hoping to be approved. These denials were only for applicants where all the data was available for fully completed applications that weren't withdrawn.

Decades of discrimination against people of color have resulted in lower homeownership rates among minorities than among whites in America. And that has a deep, long-term impact on wide swaths of America, since homeownership is traditionally how generations have catapulted themselves into the middle class, as their properties appreciate in value over time.

Read More
 

Related Stories

Housing Markets

The Best and Worst States For Retirement

Some of the largest considerations for retirees to evaluate when deciding where to retire include affordability, safety, and activities.…

Demographics

What Features Are Millennial Buyers Seeking?

Low interest rates are pulling Millennials into the housing market, where they are more likely to bet on riskier homes and want larger homes,…

Demographics

Next Generation of Renters Flock to Country's Heartland

The fastest growing active renter segment in the U.S., Gen Z, seems to be eyeing small towns in the country’s heartland—a drastic difference from…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.