The Vulnerability of Minority Homeowners in the Housing Boom and Bust
AbstractThis paper examines mortgage outcomes for a large, representative sample of individual home purchases and refinances linked to credit scores in seven major US markets in the recent housing boom and bust. Among those with similar credit scores, black and Hispanic homeowners had much higher rates of delinquency and default in the downturn. These differences are not readily explained by the likelihood of receiving a subprime loan or by differential exposure to local shocks in the housing and labor market and are especially pronounced for loans originated near the peak of the boom. Our findings suggest that those black and Hispanic homeowners drawn into the market near the peak were especially vulnerable to adverse economic shocks and raise serious concerns about homeownership as a mechanism for reducing racial disparities in wealth.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19020.
Date of creation: May 2013
Date of revision:
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Other versions of this item:
- Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2014. "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," Working papers 2014-05, University of Connecticut, Department of Economics.
- Patrick Bayer & Fernando Ferreira & Stephen Ross, 2013. "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," Working Papers 13-7, Duke University, Department of Economics.
- Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2014. "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," Working Papers 2014-006, Human Capital and Economic Opportunity Working Group.
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-11 (All new papers)
- NEP-BAN-2013-05-11 (Banking)
- NEP-DEM-2013-05-11 (Demographic Economics)
- NEP-URE-2013-05-11 (Urban & Real Estate Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Why so much policy focus on home ownership?
by Economic Logician in Economic Logic on 2013-05-31 14:54:00
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