Racial disparity in home values
The gap in home values in predominantly white neighborhoods compared to minority neighborhoods has doubled over the last 40 years, according to a new report. Oxford University Press published a study that shows the difference between the average home appraisal in white neighborhoods and those that are majority Black or Hispanic was $164,000 as of 2015. In 1980, this gap was closer to $86,000.
Neighborhoods where Black and Hispanic populations have grown by about one percent each year saw an average drop in appraised home values of $22,000 between 1980 and 2015. In comparison, neighborhoods that have become predominantly white at the same rate increased by $73,000.
The disparity may be present due to appraisers valuing homes based on pricing that was made before fair housing laws took effect in the 1960s and 1970s, the report noted.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.
Neighborhoods where Black and Hispanic populations have grown by about one percent each year saw an average drop in appraised home values of $22,000 between 1980 and 2015. In comparison, neighborhoods that have become predominantly white at the same rate increased by $73,000.
The disparity may be present due to appraisers valuing homes based on pricing that was made before fair housing laws took effect in the 1960s and 1970s, the report noted.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.