Buying a home has never been this competitive or expensive for American families, with record high home prices and now skyrocketing mortgage rates, still well above 5%. The typical monthly mortgage payment for a purchased property is up more than 30% from a year ago, according to Freddie Mac.
The market is pricing out first-time homebuyers of all backgrounds, but Black buyers face even bigger barriers.
Studies show Black homebuyers are less likely to come from wealthy families, more likely to carry debt, and pay disproportionately higher rent, making it more difficult to save for a down payment.
Black applicants were denied home loans at a much higher rate than other groups, according to a Zillow analysis of data from the Home Mortgage Disclosure Act. Nearly 20% of Black applicants were denied a mortgage in 2020 compared to 10% of White applicants. Credit history was the most common reason given to Black applicants for being denied.
Click here to read the rest of the article written by Gabe Cohen, CNN Business over at WJZ Channel 13 CSB Baltimore
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