Seeing Color in Mortgages: A Tale of Inequality

Homeownership has long been a dream for many. But for some, this dream is harder to achieve. Research has shown that racial and ethnic inequalities in wealth can have big effects on our lives. Buying a home is a big part of this. It can affect how safe we feel, the schools we go to, and the jobs we get. Scientists have studied how certain types of loans make this worse. But now, there's new research looking at over 1. 4 million different mortgage applications from the largest cities in the U. S. This study looked at all kinds of homes, all types of loan providers, all reasons for buying, and all situations people were in when they applied for a loan.The results? African Americans and Hispanics face lasting disadvantages. White and Asian Americans, on the other hand, have an edge. Things get even more complicated when people want to buy homes in neighborhoods with a lot of minorities. It seems harder to get a loan there, but for Black and Hispanic borrowers, it might be easier in areas that are becoming more diverse. This matters because lending money for homes is a big part of racial and ethnic inequalities. It can keep people from moving to better areas, can cause big differences in wealth, and can make it harder for some people to give their kids a better life.