Mortgage denials halved but 1 in 5 Black applicants still turned down

by Steve Randall20 Apr 2018

The share of mortgage applications that were turned down hit a 20-year low in 2017, with just 9.8% denied compared to 18.1% in 2007.

However, Black applicants still face a higher-than-average rate of denied applications according to Zillow’s analysis of Home Mortgage Disclosure Act (HMDA).

Denials for white applicants in 2017 amounted to 8.1% of all conventional mortgage applications, and 10.4% of Asia applicants were turned down. For Black applicants though, the share was 20.9%, and for Hispanics the denial rate was 15.5%.

"Mortgage approval data point to both progress and stubborn inequities in the American housing market," said Zillow Senior Economist Aaron Terrazas. "By some measures, the gap in mortgage approval rates between whites and blacks is as narrow as it has ever been. However, black mortgage applicants are still more than twice as likely as whites to be denied, a visible legacy of historical discriminatory policies."

Metro

Denial Rate for All Conventional Applications

Denial Rate for Conventional Loans for Asian Borrowers

Denial Rate for Conventional Loans for Black Borrowers

Denial Rate for Conventional Loans for Hispanic Borrowers

Denial Rate for Conventional Loans for White Borrowers

United States

9.8%

10.4%

20.9%

15.5%

8.1%

New York, NY

11.4%

11.9%

22.2%

17.1%

8.8%

Los Angeles, CA

10.8%

11.0%

15.0%

12.5%

9.6%

Chicago, IL

9.1%

9.6%

19.9%

16.4%

7.1%

Dallas, TX

7.5%

8.2%

13.8%

10.5%

5.7%

Philadelphia, PA

7.9%

9.9%

20.5%

15.1%

5.9%

Houston, TX

9.6%

10.3%

16.9%

13.5%

6.8%

Washington, DC

7.7%

9.1%

16.1%

11.7%

5.2%

Miami, FL

17.0%

18.0%

25.0%

18.2%

13.3%

Atlanta, GA

9.6%

9.3%

19.2%

14.4%

6.6%

Boston, MA

6.7%

7.1%

15.6%

11.6%

5.8%

San Francisco, CA

8.8%

10.2%

14.5%

11.0%

6.9%

Detroit, MI

9.4%

8.4%

20.0%

10.0%

7.9%

Riverside, CA

11.8%

14.7%

16.0%

12.9%

9.4%

Phoenix, AZ

8.6%

8.2%

14.2%

12.4%

7.5%

Seattle, WA

7.5%

9.1%

16.1%

11.6%

6.3%

Minneapolis, MN

5.0%

8.5%

12.8%

8.6%

4.3%

San Diego, CA

9.1%

9.9%

14.4%

11.4%

8.4%

Saint Louis, MO

7.4%

8.6%

23.9%

10.9%

6.3%

Tampa, FL

13.1%

12.6%

21.7%

16.4%

11.5%

Baltimore, MD

8.3%

11.6%

17.0%

14.6%

5.9%

Denver, CO

6.6%

8.9%

12.0%

9.2%

5.8%

Pittsburgh, PA

6.8%

8.5%

18.5%

9.4%

6.2%

Portland, OR

6.5%

8.6%

8.3%

13.3%

5.7%

Charlotte, NC

8.8%

9.2%

16.3%

14.5%

6.9%

Sacramento, CA

9.5%

12.7%

10.2%

12.4%

7.8%

San Antonio, TX

11.6%

11.2%

14.4%

15.9%

8.2%

Orlando, FL

13.3%

16.3%

23.0%

18.4%

10.2%

Cincinnati, OH

7.7%

8.2%

17.1%

11.0%

6.9%

Cleveland, OH

6.9%

10.7%

19.9%

12.0%

5.7%

Kansas City, MO

5.6%

7.6%

15.6%

13.6%

4.6%

Las Vegas, NV

11.8%

13.6%

17.5%

12.3%

10.1%

Columbus, OH

8.5%

10.0%

19.6%

22.2%

7.4%

Indianapolis, IN

7.4%

9.0%

17.8%

15.4%

6.4%

San Jose, CA

8.4%

9.0%

8.0%

9.1%

7.1%

Austin, TX

7.5%

7.1%

17.5%

11.2%

6.4%

 

 


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