New Report Exposes Mortgage Disparities: Solo Women Face Higher Denial Rates
A new report reveals significant disparities in mortgage approvals between solo female and male applicants in the United States. Washington, D.C. is the sole exception, with more solo women seeking loans. However, the situation is starkly different in states like Louisiana, Mississippi, and Alabama, where solo women face considerable challenges.
Nationally, solo women applicants encounter a 15.7% mortgage denial rate, compared to 12.1% for solo men. This disparity is even more pronounced in certain states. In Louisiana, Mississippi, and Alabama, the largest gaps in denial rates are observed, primarily due to systemic discrimination, economic disparities, and historical segregation. Income gaps also play a role, with solo women homebuyers 29.8% more likely to be denied.
In 2024, solo women took on $173.3 billion in mortgage debt, significantly less than the $328.7 billion borrowed by solo men. This reflects the lower number of loans issued to solo women, with 600,817 new home loans compared to 949,477 for solo men. Interestingly, in six states, mortgage denial rates are higher for solo male applicants than solo females.
The mortgage landscape in the United States shows clear disparities between solo female and male applicants. While the reasons are complex and varied, systemic discrimination, economic disparities, and historical policies contribute to higher denial rates for solo women, particularly in states with large gaps. Addressing these issues requires targeted policies and efforts to promote fairness and equality in lending practices.
