 Rates and race: An analysis of racial disparities in mortgage ratesThomas Boehm, Paul Thistle and Alan Schlottmann Housing Policy Debate, 2006, vol. 17, issue 1, 109-149 Abstract: We use a model based on the 1991–2001 American Housing Survey to determine whether differences in mortgage rates among whites, blacks, and Hispanics are due to differences in the property and loan characteristics of the borrowers themselves or to racial differences in how those characteristics are priced into rates. We separate loans into major market categories and present decompositions to assess the differences and distinguish between them. Very little information on mortgage pricing has been generally available to researchers, and the literature that discusses what information there is has not used a scheme that allows rate differences to be classified by characteristics and pricing. We find that significant differentials are more likely in the conventional mortgage market. The largest occur among blacks, who pay a much higher annual percentage rate than whites for both purchases and refinancing. For government‐insured loans, Hispanics do slightly better than whites. Date: 2006 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:houspd:v:17:y:2006:i:1:p:109-149 Ordering information: This journal article can be ordered from DOI: 10.1080/10511482.2006.9521563 Access Statistics for this article Housing Policy Debate is currently edited by Tom Sanchez, Susanne Viscarra and Derek Hyra More articles in Housing Policy Debate from Taylor & Francis Journals |
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