Carrie Bernstein, Research Manager and State Data Center Manager at UMass Donahue, said: A laboratory that conducted analysis in collaboration with the Massachusetts Community & Banking Council.
This report is consistent with other recent analyzes of the state’s homeownership market, and found that many families are pricing due to soaring housing costs across Great Boston. Outside the cityForces first-time homebuyers to buy their dream home in other parts of the state.
As more black residents, the move had a major impact on Boston’s historic black community. Away from the city According to the May Globe Review of State-Wide Loans and Census Data, they settle in small clusters of communities (such as Brockton) along Route 24 Corridor south of Boston. Realtors point out a variety of reasons why first-time homebuyers may choose a particular community. School quality, living expenses, community diversity, business culture and more. But what is clear is that you buy in a place where people can afford to live.
In Boston, the total number of loans to black borrowers decreased from 306 to 256 between 2019 and 2020. Most of the loans (81%) were made in five regions: Dorchester, Roxbury, Mattapan, Hyde Park and Jamaica Plain.
According to the latest report, which analyzed 2020 data from across the state, 3,900 black households and 7,155 Latin households purchased their first homes that year. This is a record high for both demographic groups. The total number of mortgages granted that year also peaked at a record high of 76,380 mortgages.
The 2020 data represent the latest years available and do not take into account today’s housing market and rising interest rates, which can affect where and when borrowers can apply for mortgages.
Home ownership can make a significant contribution to wealth building and helps fill the racial wealth gap in the state. But even with success, Thomas Callahan of the Massachusetts Community Banking Council said there was still work to be done to bring greater equity.
Of the total number of loans made in 2020, 5.1% went to black households, but black residents 6.5 percent of the state’s population. Of the total loan amount, black residents received only 3.5% of the total loan, which was not a government-sponsored federal housing bureau loan.
Similarly, Hispanics make up 12.6% of the state’s total population, while Latin households receive only 6.6% of ungoverned loans. Of all loans, Latin households received 9.4 percent.
More than half of all government-sponsored loans are issued in Gateway City, or in smaller cities such as Springfield, Brockton, New Bedford, and Lawrence, where the median income level is below the state-wide average. rice field.
On the other hand, according to the report, loans to colored households in 2020 were concentrated in a very small number of municipalities. 38% of loans to black households came from Boston, Springfield, Worcester, Brockton and Taunton. This figure shows that black and Latin households are still largely separated, but 46% of all loans are down from two years ago when they were made in just five communities. Only a small community in Massachusetts.
Similarly, almost one-third of all loans to Hispanic households were in only five communities: Boston, Springfield, Worcester, Lawrence, and Lynn.
In Massachusetts in 2020 Lender did not approve a single mortgage for a black borrower In 107 of the 351 communities in the state.
Meanwhile, black, Asian, and Hispanic households are being denied loans at higher interest rates than white borrowers in similar positions, according to the report. The report investigated the rejection of mortgage applicants, who are highly capable applicants in paper. They reported income with a down payment of 20% or more, relatively low overall debt, and above the median of the region.
According to the report, 13% of black applicants were rejected out of more than 20% of down payment mortgage applicants. 9% of Hispanic borrowers have been denied a mortgage. And 6 percent of Asian applicants were rejected. In contrast, only 5 percent of white applicants in this pool were rejected.
According to Michelle Meiser, co-chair of the Community and Banking Council’s Mortgage Lending Committee and Vice President of Cambridge Trust, the report found one positive trend for working-class households during times of high house prices. I did. Middle-income borrowers are stable, with 32% of all mortgages directed at households that account for less than 80% of the region’s average income.
“This report highlights the importance of innovative local homeownership programs that help address the most common barriers faced by poorly serviced first-time homebuyers. Down payment and credit availability, “Meiser said.