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TH E M R EP O RT | 49 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 Top 10 Markets for Homebuyers Considering Simplicity WalletHub analysts scoured 1,268 cities across five key dimensions to determine the best smaller locales to settle down in. F ewer traffic troubles and more wiggle room might not be the only perks of small-town living, accord - ing to data analysis company Wal- letHub. Besides offering a respite from the hustle-bustle lifestyle of America's larger locales, setting down root in a smaller city could also put a much teenier dent on your wallet, the entity reports. For an idea how this all shakes out in the real world, have a quick look at this scenario of - fered up by the Economic Policy Institute (EPI): The cost of living for a two-parent, two-child family in Hanford, California (about 200 miles away from super glitzy and also super pricey San Francisco), for instance, would be nearly 1 percent less than the median U.S. household budget of $5,312. Juxtapose that with 44 percent more for that same family in San Fran and you can see what EPI and WalletHub are getting at. But with so many simpler places from which to choose, which ones are the cream of the affordable small-town crop? WalletHub analysts scoured 1,268 cities across five key dimensions: affordability, economic health, education and health, quality of life, and safety. For its sample, the company chose places with population sizes between 25,000 and 100,000 and considered only the "city proper" in each case, dismissing cities in the surrounding metro area. Topping the list at No. 1, Ivy League town Princeton, New Jersey, snagged a total score of 73.36. Lexington, Massachusetts, garnered a 72.67 ranking. Leawood, Kansas, swooped in to score at 71.68. Back in the Northeast, Milton, Massachusetts, came in at No. 4, with a 69.14, barely edging out Brentwood, Tennessee, which recorded a 69.13 ranking. Rounding out WalletHub's top 10: Los Altos, California, earned a 68.55; Carmel, Indiana, 68.47; Needham, Massachusetts, 68.45; Holly Springs, North Carolina, 67.62; and Littleton, Colorado, 67.45. When talking specifically about lowest housing costs, WalletHub crowned Madison, Alabama, No. 1, with Marion, Iowa; Keller, Texas; Leawood, Kansas; and Collierville, Tenn., rounding out the top five. Inclusionary Housing Needed for Full Recovery One of the issues facing minority borrowers today is the continued barrier to accessing credit, as lending standards have tightened. A lmost a decade after the housing crisis, a recently released article by the Urban Institute reports that positive economic growth among cities across the nation is seemingly not enough to ensure economic success for all residents. Today, one of the issues facing minority homeowners is the continued barrier to accessing credit, as lending standards have become stricter. In light of this, the article highlights three major metros, Detroit, San Francisco, and Houston. The Urban Institute utilizes its recently updated Home Mortgage Disclosure Act (HMDA) interac - tive map—using U.S. Census Bureau data—to reveal how the recovery doesn't include all home- buyers in these areas. In 2006, minority borrowers made up a large share of mortgage originations nationwide—as 25 percent of the 12.2 million mort - gages originated went to black or Hispanic borrowers when the groups represented 28 percent of the population combined. Ten years later in 2016, blacks and Hispanics represented 31.1 percent of the population, but less than 17 percent of 7.5 million newly originated mortgages went to black and Hispanic borrowers, the article reported. In Detroit, black borrowers experienced gains in 2006. During the housing bubble peak, the black share of purchase mortgage originations was 21 percent, and the share of refinanced mortgages was 15 percent. By 2016, supply and demand issues have been consistent in Detroit, as blight and uneven economic growth have impacted the area. In addition, 8 percent of mortgage purchases were made to black borrowers and 5 percent of refinances. However, in a predominately black city—with 84 percent of the population— Hispanic purchase and refinance rates are above 2001 levels, while white rates are above 2006 levels. In San Francisco, mortgages made to Hispanic borrowers in 2001 made up 15 percent of pur - chase originations. In 2006, over 25 percent of purchase mortgages and 21 percent of refinance mortgages were made to Hispanic borrowers. However, the Hispanic share of purchase mortgages dropped to 10 percent following the crisis. By 2010, the share of refinance mortgages also decreased to 5 percent. San Francisco, however, has experienced economic growth, but is pricing out minority resi - dents as the area has limited new home construction. While white shares are above 2006 levels, the Hispanic share of originations is 11 percent for purchase mortgages and less than 10 percent for refi- nance mortgages in 2016. As for Houston, the market experienced increases in both black and Hispanic mortgage originations. Black share of pur- chase originations increased to 15 percent in 2006—compared to 9 percent in 2001. Meanwhile, refinance share rose from 9 to 17 percent during the same time period. Additionally, the Hispanic share of purchase originations rose from 19 to 26 percent, and the refinance share rose from 17 to 26 percent. In 2016, the share of purchase mortgages made to black borrow - ers in Houston was 11 percent, and the share of refinance mortgages was 12 percent. For Hispanic bor- rowers, the share was 23 percent for purchase originations and 19 percent for refinance mortgages. Overall, Houston's market is keep- ing up with the economy.

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