While minorities are expected to comprise almost half of the first-time homebuying market within the next ten years, mortgage lending to minorities has fallen 25 percent more than for whites since the mortgage bust. According to the Joint Center for Housing Studies at Harvard University, during the decade from 2004 to 2013 the homeownership rate for blacks has fallen 590 basis points, from 49.7 percent to 43.8 percent, after crossing the 50 percent line for the first time from 2004 to 2008.

As nationalmortgagenews.com informs MHProNews, credit standards will have to be lowered, as the Joint Center’s report says: “Their [minorities’] demand for owner-occupied housing will depend in large measure on the availability of mortgage financing that accommodates their limited resources.” While monthly payments for median-priced homes increased 23 percent in just one year, “Between 2007 and 2012, real median household incomes dropped eight percent among 25-34 year olds and seven percent among 35-44 year olds,” according to the report. Given soaring student debt, the report concludes the growth of national homeownership will depend upon the easing of credit in coming years, absent a booming overall economy. ##

(Image credit: forbes.com)