IDEAS home Printed from https://ideas.repec.org/a/jre/issued/v25n42003p509-528.html
   My bibliography  Save this article

The Effect of Income, Ethnicity/Race and Institutional Factors on Mortgage Borrower Behavior

Author

Listed:
  • L. Jide Iwarere

    () (Howard University, Washington, DC 20059)

  • John E. Williams

    () (Morehouse College, Atlanta, GA 30014)

Abstract

Studies examining mortgage choice behavior generally assume a frictionless mortgage market in which borrower decisions are influenced only by economic variables. This study explores the interface between demographic and institutional factors inherent in mortgage market logistics and the information flow that affects borrower behavior. The efficiency of these processes is particularly important when studying inner city real estate markets, since these markets are disproportionately represented by low income and minority households. The effect of institutional factors was examined by conducting a survey of borrower behavior in metropolitan Washington, DC. The secondary data findings indicate that ethnicity /race and income are jointly sensitive to borrower decision, confirming the clientele effect. The primary data findings also indicate that institutional factors influence mortgage choice. Similarly, borrowers are influenced by the channel chosen to evaluate market information. However, income was not found to be a significant determinant of borrower behavior.

Suggested Citation

  • L. Jide Iwarere & John E. Williams, 2003. "The Effect of Income, Ethnicity/Race and Institutional Factors on Mortgage Borrower Behavior," Journal of Real Estate Research, American Real Estate Society, vol. 25(4), pages 509-528.
  • Handle: RePEc:jre:issued:v:25:n:4:2003:p:509-528
    as

    Download full text from publisher

    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol25n04/08.509_528.pdf
    File Function: Full text
    Download Restriction: no

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:25:n:4:2003:p:509-528. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster). General contact details of provider: http://www.aresnet.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.