The Vulnerability of Minority Homeowners in the Housing Boom and Bust

Patrick Bayer, Fernando Ferreira and Stephen Ross

American Economic Journal: Economic Policy, 2016, vol. 8, issue 1, 1-27

Abstract: This paper examines mortgage outcomes for a large sample of individual home purchases and refinances linked to credit scores in seven major US markets. Among those with similar credit scores and loan attributes, black and Hispanic homeowners had much higher rates of delinquency and default in the downturn. These estimated differences are especially pronounced for loans originated near the peak of the housing boom. These findings suggest that black and Hispanic homeowners drawn into the market near the peak were especially vulnerable to adverse economic shocks and raise concerns about homeownership as a mechanism for reducing racial disparities in wealth. (JEL D14, J15, R23, R31, R38)

JEL-codes: D14 J15 R23 R31 R38 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/pol.20140074
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Citations: View citations in EconPapers (37)

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Related works:
Working Paper: The Vulnerability of Minority Homeowners in the Housing Boom and Bust (2014)
Working Paper: The Vulnerability of Minority Homeowners in the Housing Boom and Bust (2013)
Working Paper: The Vulnerability of Minority Homeowners in the Housing Boom and Bust (2013)
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