Housing gap worsens through pandemic

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The difference between denial rates for black mortgage applicants and white applicants increased by 10 percentage points between 2019 and 2020, an analysis of the latest federal Home Mortgage Disclosure Act data from Zillow shows.

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Why this matters: report today Provides more evidence that the pandemic is disproportionately affecting black Americans.

By numbers: Lenders denied about 20% of black mortgage applicants in 2020, which was almost twice the denial rate for white applicants.

  • In terms of extent, state by state, refusal rates were highest in Mississippi at 31% and lowest in Hawaii and Maine at less than 11%.
  • For white applicants, the denial rate was the lowest in West Virginia at about 15% and North and South Dakota at about 7%.
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What are they saying: Nicole Bachaud, Zillow Markets analyst, wrote, “The disproportionate impact of the pandemic on Black homes has stymied efforts to close the gaps in credit access, homeownership, home value and mortgage refusal rates, making the equity journey slower than ever.” Is.” Report.

big picture: Homeownership is the single most important driver of rising wealth—particularly for black Americans, who have been held back by centuries of long segregation policies and systemic racism.

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what to watch: housing costs are Soaring While mortgage rates are climb back where they were at the start of the pandemic, like employment And salary benefits Stopped for Black Americans.

go in: Race and Habitat in America

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