Black homebuyers face significant challenges in securing a mortgage loan for homeownership, and a new study has found that these obstacles are unlikely to disappear anytime soon.
Black applicants are 1.7 times more likely to be denied a mortgage than applicants from other racial backgrounds, according to the latest report from LendingTree. In 2024, 19% of Black applicants were denied mortgages. For perspective, that’s about 7.73 percentage points higher than the denial rate for all other applicants, which is 11.27%.
“For generations, homeownership has been one of the most powerful tools for building wealth that Americans have. Homeownership isn’t cheap, and there are ongoing costs; however, the equity that you can build over the years can be incredibly helpful,” said Matt Schulz, chief consumer finance analyst at LendingTree, in the report. “Not only can it provide you funding when you’re in a financial pinch, but it can also be used in working toward other financial goals.”…