Minorities, immigrants fuel mortgage demand

WASHINGTON -- Oct. 26, 2006 -- Minority buyers made up the fastest-growing segment of all new mortgages for home purchases in 2005, according to a recent report analyzing mortgages in high-volume metropolitan areas (areas with greater than 1,000 loans per year for Hispanic, African-American, and Asian home buyers.)

The report, “The 2005 Minority Home Buying Surge,” analyzes changes in minority mortgage lending in 388 metros. In 320 of those markets, the percentage of change for minority borrowers was greater than it was for whites. Genworth Mortgage Insurance and Compliance Technologies issued the report at the recent Mortgage Lending Industry Diversity and Emerging Markets Conference in Washington, D.C.

Ocala, Fla., emerged as the area with the greatest increase -- 90 percent in 2005 over 2004 -- in new mortgages for minorities, compared with a 12 percent increase in new mortgages for whites. Following Ocala in the top five with greatest increase in new loans for all minorities were: Lakeland-Winter Haven; Cape Coral-Fort Myers, Fla.; Boise City-Nampa, Idaho; and Killeen-Temple-Fort Hood, Texas.

The report also showed that immigrants are settling in new places. Among the top 10 growth markets for Hispanic immigrants are: Scranton, Penn.; Charleston, S. C.; and Boise, Idaho. Included in the top 10 for Asians were: Albuquerque, N. N.; Lubbock, Texas; Boise, Idaho; Myrtle Beach, S.C.; and Hagerstown, Md.

Here's a rundown of the cities that are seeing the biggest increase in minority home-loan borrowers:

For African-American buyers
1. Lakeland-Winter Haven, Fla.
2. Ocala, Fla.
3. South Bend, Mishawaka, Ind.-Mich.
4. Cape Coral-Fort Myers, Fla.
5. Killeen-Temple-Fort Hood, Texas

For Hispanic Buyers
1. Ocala, Fla.
2. Lakeland-Winter Haven, Fla.
3. Cape Coral-Fort Myers, Fla.
4. Port St. Lucie-Fort Pierce, Fla.
5. Scranton-Wilkes-Barre, Penn.

For Asian Buyers
1. Albuquerque, N.M.
2. Lubbock, Texas
3. Lakeland-Winter Haven, Fla.
4. Ocala, Fla.
5. Phoenix-Mesa-Scottsdale, Ariz.

Source: REALTOR® Magazine Online, Camilla McLaughlin

© 2006 FLORIDA ASSOCIATION OF REALTORS

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