Race economics and mortgage lending

by: Henry Meier

“Buying a home is easier if you’re white” reported CNN yesterday based on the findings of a  research report put together by Zillow with a forward by the National Urban League. The report, which was much more measured in its conclusions than some of the news headlines it generated,   makes these headline grabbing assertions in its executive summary:

–Fewer minorities apply for conventional mortgages. Although Hispanics and Blacks make up 17 percent and 12 percent of the U.S. population, respectively, they represented only 5 percent and 3 percent of the conventional Mortgage application pool.

-Blacks experience the highest loan application denial rates. 1 in 4 blacks willbe denied their conventional loan application, as opposed to 1 in 10 whites.

-Wide disparities in homeownership rates among ethnic groups persist.73.9 percent of whites own a home, whereas 60.9 percent of Asians, 50.9percent of Hispanics and 46.5 percent of blacks own.

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