Real Estate News

Mortgages still hard to come by for minorities in Massachusetts

An economics professor explains that even when salaries are the same, whites still get more home loans than minorities.

An economics professor explains that even when salaries are the same, whites still get more home loans than minorities.

In his annual home-loan trend study, Jim Campen, economics professor emeritus at University of Massachusetts Boston, confirmed the continuation of a trend that was first identified more than 20 years ago.

The Boston Globe reports that Campen found aspiring minority homebuyers still have a much harder time getting mortgages than white buyers, even when their salaries are similar. Twenty-one percent of black Boston mortgage applicants in 2014 were rejected, while only 6 percent of white loan applicants were rejected.

The Globe writes:

“Even when minorities make as much money as whites, the disparities remain. Among applicants with incomes between $71,000 and $90,000, blacks and Latinos were rejected at significantly higher rates than whites, according to Campen’s analysis.’’

The Federal Reserve Bank of Boston identified this as a problem as early as 1992, when lenders pledged they were going to do something about it, the Globe noted, but Campen has confirmed not much as changed since then.

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“It’s a combination of a lot of things,’’ Campen said. “It’s very discouraging. It’s all about the long legacy of historical discrimination.’’

Read the full Boston Globe story here.

Related: Neighborhoods where homes sellers get more money than they asked for

Neighborhood where home sellers get more than they asked for

1. Central Square, Cambridge. Average sale-to-list ratio: 114 percent. Median home price in August: $660,000. Photo by Dina Rudick / Globe Staff. Dina Rudick / Globe Staff

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2. Franklin Field South, Boston. Average sale-to-list ratio: 113.6 percent. Median home price in August: $278,775. Photo by Sean Proctor / Globe Staff. Sean Proctor / Globe Staff

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3.Cambridgeport, Cambridge. Average sale-to-list ratio: 111.6 percent. Median home price in August: $825,000. Photo by Pat Greenhouse / Globe Staff. Pat Greenhouse / Globe Staf

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4. West Cambridge, Cambridge. Average sale-to-list ratio: 108.2 percent. Median home price in August: $975,000. Photo by Aram Boghosian for The Boston Globe. Aram Boghosian for The Boston Globe

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5. Hyde Square, Jamaica Plain. Average sale-to-list ratio: 107.1 percent. Median home price in August: $440,000. Photo by Suzanne Kreiter / Globe staff. Suzanne Kreiter / Globe staff.

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6.Industrial Park, South Boston. Average sale-to-list ratio: 106.9 percent. Median home price in August: $576,000. Photo by David L Ryan / Globe Staff Photo. David L. Ryan/Globe Staff

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7. Bellevue Hill, West Roxbury. Average sale-to-list ratio: 106.5 percent. Median home price in August: $670,300. Photo by Kayana Szymczak for the Boston Globe. Kayana Szymczak for the Boston Globe

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8. Harvard Square, Cambridge. Average sale-to-list ratio: 106.4 percent. Median home price in August: $798,806. Photo by Craig F. Walker / Globe Staff. Craig F. Walker / Globe Staff

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9. Riverside, Cambridge. Average sale-to-list ratio: 104.9 percent. Median home price in August: $430,000. Photo by Pat Greenhouse / Globe Staff. Pat Greenhouse / Globe Staff

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Egmont Tenants, Brookline. Average sale-to-list ratio: 104.3 percent. Median home price: $815,000. Picasa 3.0

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