Mortgage markets have improved, but the inequities are still pronounced

Black mortgage applicants in the Miami area are denied at a substantially higher rate than all applicants, according to new research from Zillow.

In 2014, 30.3 percent of black mortgage applicants in Miami were denied, compared to 19.5 percent of all applicants in the area. That is not only worse than in 2013, when the difference was 21.2 percent of all applicants and 29.2 percent of black applicants, but the disparity is also the highest in the nation, and much higher than the national rate of 11.2 percent for all applicants and 23.5 percent for black applicants.

Disparities in Mortgage Lending

Other details from Zillow’s report included:

• African Americans comprise 12 percent of the U.S. population, but in 2014, they accounted for only 3 percent of conventional loan applicants, and only 2.5 percent of those approved for a conventional loan.
• Similarly, Hispanics make up 17.3 percent of the population, but represent only 6.1 percent of applicants and 5.5 percent of approved applicants.
• Finally, Whites make up 62 percent of the population but 69.5 percent of conventional loan applicants, and are 71.9 percent of those approved.

This infographic compares Miami’s denial rates to those of other metro areas: