MReport April 2022

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M REPORT | 57 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Analyzing Racial Disparities in Hispanic American Households Latinos are predicted to account for 70% of new homeowners over the next 20 years, as they target generational wealth and long-term homeownership. H ispanic Americans have historically been underrepresented as homeowners, however progress is being made toward closing the gap., in conjunction with The National Association for Hispanic Real Estate Professionals (NAHREP), released a survey that found that 58% of Hispanic American home shoppers are looking to buy their first home. According to the National Association of Realtors, this num- ber is substantially higher than the population at large, where first-time buyers make up 34% of all home buyers nationally. The survey also showed that home- ownership can be viewed as a way to build generational wealth, that many Latinos plan to pass a home on to their children, and that they are likely to consider extended family in their home search process. and HarrisX sur- veyed 1,002 Hispanic Americans in January to learn about their perception on home buying and homeownership. The survey found that 41% of respondents own the home that they live in, which is lower than the national average of 66%, ac- cording to census data. However, 39% of those surveyed are current- ly looking to buy a home, which suggests that Hispanic Americans are making strides toward closing the homeownership gap. "As Latinos are predicted to ac- count for 70% of new homeown- ers over the next 20 years, insights into Latino homebuying will be critical to understanding how to sustain growth in the housing market," said Gary Acosta, Co- founder and CEO of NAHREP. Twenty-three percent of those surveyed said that they are or would be the first generation in their family to own a home. Additionally, 71% of respondents/ their siblings haven't inherited a family home, but an incred- ible 73% plan to pass a home on to their children someday. With home values increasing at stagger- ing rates over the last few years, wealth gained from owning a home over the long term could be significant. The 2017 Census showed that homeowners' median wealth was 89 times higher than that of renters. "Homeownership can be a way to build generational wealth for families, but there are significant barriers to entry, especially in to- day's high-priced and fast-moving housing market," said George Ratiu, Manager of Economic Research at "There are a number of programs avail- able to help first-time buyers break into the market, but many people either don't know that these programs exist or don't know where to start in finding one that works for their situation." Although down payment assis- tance can help, awareness is low. There are a number of programs available to help first-time home- buyers break into the market, but awareness of these programs is low. Some 55% of non-homeown- ers have neither used nor heard of these programs. However, 35% of homeowners surveyed had suc- cessfully used one of these pro- grams, showing that the programs do work and increasing awareness of them is important in continu- ing to close the homeownership gap for Hispanic Americans. "At, we believe that everyone should be able to create a comfortable home for themselves and their families. We want to be a resource for information that helps people feel empowered to buy their first home," said Mickey Neuberger, CMO, "To help first-time homebuyers navigate this tricky process, we developed a free First-time Homebuying 101 ebook, which is now available in English and Spanish, that provides information and tips on everything from financial readiness, to picking the right home, to navigating the offer stage and the closing process." The survey also found that while 83% of respondents don't live in a household with more than two generations, family is an important consideration during the homebuying process. Two-thirds of respondents would consider extended family in their home search. The most important consider- ations are: • Buying a home that is close to extended family (27%) • Having room for overnight visitors (22%) • Buying a home that can accom- modate extended family living in the home long-term (17%) according to new applications for February 2022 stands at $1,653, up from $1,526 in January and $1,316 a year prior. The median payment for an FHA loan was found to be $1,201 (up from $1,009 a year ago); a median payment for a conven- tional loan was $1,749 (up from $1,391 a year ago). Mirroring a rise in median mortgage application payments, median asking rents increased 1.15%, meaning mortgage pay- ments for home purchases have increased relative to rents. The index found the national median asking rent during the fourth quarter of 2021 was $1,207 "Asking rents from first-quarter 2020 to fourth-quarter 2021 increased 16%, even outpacing the steep growth in mortgage application payments over that period," Seiler added. "MBA's mortgage payment to rent ratio is now at roughly the same level it was at the start of the COVID-19 pandemic in March 2020." Other notable data found by the report includes: The top five states with the highest PAPI were: Idaho (221.3), Nevada (216.5), Arizona (189.4), Utah (181.6), and Washington (180.4). • The top five states with the lowest PAPI were: Washington, D.C. (86.3), Connecticut (91.8), Alaska (94.8), Iowa (101.2), and Wyoming (104.1). • Homebuyer affordability de- creased for Black households, with the national PAPI increas- ing from 140.0 in January to 151.6 in February. • Homebuyer affordability de- creased for Hispanic house- holds, with the national PAPI increasing from 125.9 in January to 136.4 in February. • Homebuyer affordability de- creased for white households, with the national PAPI increas- ing from 136.6 in January to 147.9 in February. Being a new survey, the MBA may change the methodology of this index in the future in the coming months based on feedback. To submit comments or feedback, contact the MBA directly at MBAResearch@MBA. org.

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