Mortgage

Black mortgage applicants denied at nearly double the rate as white applicants

Black mortgage applicants denied at nearly double the rate as white applicants
Written by Publishing Team

The gap between rejection rates for black mortgage applicants and white applicants grew by 10 percentage points between 2019 and 2020, according to an analysis of the latest Federal Mortgage Disclosure Act data from Zillow Shows.

why does it matter: Today’s report provides more evidence that the pandemic is affecting black Americans disproportionately.

In numbers: Lenders denied nearly 20% of black mortgage applicants in 2020, nearly twice the rejection rate of white applicants.

  • In terms of scope, state by state, the denial rate was highest in Mississippi at 31% and lowest in Hawaii and Maine at less than 11%.
  • For white applicants, the rejection rate was highest in West Virginia at about 15% and lowest in North and South Dakota at about 7%.

what are they saying: Nicole Baswood, market analyst at Zillow writes: “The pandemic’s disproportionate impact on black families has stalled efforts to close gaps in credit access, homeownership, home values, and mortgage rejection rates, making the journey to equity even slower than it has been. actually”. the report.

The Big Picture: Home ownership is the single most important driver of growing wealth — especially for black Americans, who have been hampered by centuries of segregation and systemic racism.

what do you want to watch: Housing costs are skyrocketing while mortgage rates are up to where they were at the start of the pandemic, as employment and wage gains for black Americans have stalled.

deepen: Ethnicity and Residence in America

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