Real Estate Papers

Document Type

Journal Article

Date of this Version

2-2016

Publication Source

American Economic Journal: Economic Policy

Volume

8

Issue

1

Start Page

1

Last Page

27

DOI

10.1257/pol.20140074

Abstract

This paper examines mortgage outcomes for a large sample of individual home purchases and refinances linked to credit scores in seven major US markets. Among those with similar credit scores and loan attributes, black and Hispanic homeowners had much higher rates of delinquency and default in the downturn. These estimated differences are especially pronounced for loans originated near the peak of the housing boom. These findings suggest that black and Hispanic homeowners drawn into the market near the peak were especially vulnerable to adverse economic shocks and raise concerns about homeownership as a mechanism for reducing racial disparities in wealth.

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Date Posted: 27 November 2017

This document has been peer reviewed.