AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Racial Disparities in the US Mortgage Market
AEA Papers and Proceedings
vol. 114,
May 2024
(pp. 201–04)
Abstract
We study racial disparities in the US mortgage market. Using new data from Hurtado and Sakong (2024), we present three findings. First, we document access disparities between minority and otherwise-identical White borrowers even within the same bank and with the same loan officer. In contrast, cost disparities are nearly zero. Second, the use of automated underwriting algorithms is associated with smaller access disparities but slightly larger cost disparities. Third, individual factors such as loan officers' race and whether borrowers' race is observed at application do not seem to matter much.Citation
Hurtado, Agustin, and Jung Sakong. 2024. "Racial Disparities in the US Mortgage Market." AEA Papers and Proceedings, 114: 201–04. DOI: 10.1257/pandp.20241128Additional Materials
JEL Classification
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- R31 Housing Supply and Markets