Wealth gap impacts Hispanic homebuyers in Texas
Hispanic Texans have one of the highest rates of mortgage denials in the country, with 19.1% of their applications denied.
Why it matters: Homeownership is a primary way to build wealth, and non-white Americans have historically been shut out of this opportunity due to systemic racism and segregation policies.
- This has created a racial generational wealth gap that persists into the 21st century.
The big picture: Mortgage applications submitted by Black and Latino Texans were disproportionately rejected compared to their white counterparts in 2020, according to Home Mortgage Disclosure Act data analyzed by Zillow.
Context: Dallas has a particularly racist history when it comes to housing. The city hired a consulting firm to propose solutions.
By the numbers: According to Zillow's report, 18.7% of Black mortgage applicants in Texas were denied in 2020, compared to 11.2% of white applicants.
- Zillow also found that 38% of Latino buyers said they were "very concerned" about qualifying for a mortgage, compared to 22% of white mortgage buyers.
- One third of Latino mortgage buyers reported being denied at least once for a mortgage before ultimately being approved, compared to 20% of white buyers.
Zoom out: Across the country, the denial rate for Black applicants was 19.8% versus 10.7% for white applicants.
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