... and larger losses for minority groups than it did for whites.
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So says an analysis of housing, economic and demographic data by the Pew Hispanic Center, a project of the Pew Research Center.
From 1995 through the middle of this decade, homeownership rates rose more rapidly among all minorities than among whites. But since the start of the housing bust in 2005, rates have fallen more steeply for two of the nation’s largest minority groups – blacks and native-born Latinos – than for the rest of the population.
Overall, the ups and downs in the housing market since 1995 have reduced the homeownership gap between whites and all racial and ethnic minority groups. However, a substantial gap persists. As of 2008, 74.9 percent of whites owned homes, compared with 59.1 percent of Asians, 48.9 percent of Hispanics and 47.5 percent of blacks.
At the same time, blacks and Latinos remain far more likely than whites to borrow in the subprime market where loans are usually higher-priced.2 In 2007, 27.6% of home-purchase loans to Hispanics and 33.5% to blacks were higher-priced loans, compared with just 10.5% of home-purchase loans to whites that year. For black homeowners who had a higher-priced mortgage, the typical annual percentage rate (APR) was about 3 percentage points greater than the rate on a typical 30-year, fixed-rate conventional mortgage; for Latinos who had a higher-priced mortgage, the typical rate was about 2.5 percentage points higher than that of the conventional mortgage.
Read the rest of the PEW summary here.
Read full report here.