Detroit mortgage rates are climbing, a sign of an improving housing market, nonprofit says

The number of mortgages in Detroit skyrocketed from the low hundreds to the thousands between 2012 and 2023. Here are the implications of that housing statistics for the city and how it might help guide more significant choices.

• • 
    The number of mortgages in Detroit has climbed over the past 11 years, indicating renewed interest in the city as more people move in
    
  • 
    It’s a sign of an improving housing market and infrastructure investment is likely to follow in the form of new water lines, powerlines, and parks
    
  • 
    But the number of denials for a mortgage application for Black people continues to outpace white people, Detroit Future City said
    

• 
  The number of mortgages in Detroit has climbed over the past 11 years, indicating renewed interest in the city as more people move in
  
• 
  It’s a sign of an improving housing market and infrastructure investment is likely to follow in the form of new water lines, powerlines, and parks
  
• 
  But the number of denials for a mortgage application for Black people continues to outpace white people, Detroit Future City said
  

(FOX 2):Housing statistics may reveal a lot, and the most recent information from Detroit indicates that significant progress is being made in the Motor City.

Over the past ten years, mortgage rates have increased significantly, according to Detroit Future City, a nonprofit organization. That has great significance for the community and can help determine where resources should be allocated, as well as which groups of people still require assistance with home ownership.

Overview:

The DFC was allowed to examine housing data from 2012 to 2023 because of the Home Mortgage Disclosure Act. About 200 home loans were given out by banks eleven years ago. 3,600 mortgages were granted two years ago.

According to DFC Vice President Ashley Williams Clark, the activity indicates that people are coming back to the city. Black homeownership in Detroit is rising and even surpassing white homeownership, according to the same data.

Additionally, infrastructure advancements and commercial development will follow population shifts.

As stated by DFC President Anika Goss, this includes developments “like parks, and new water lines, powerlines, and powergrids,” “because there is density and investment in those communities where there hadn’t been before.”

What they’re saying:

According to Clark, becoming a homeowner is a “commitment to living somewhere.”

“You’re making a commitment to that neighborhood and so when people are choosing to purchase a home with a loan, in many ways that does indicate to us that there is something going on in that neighborhood that’s exciting,” she continued.

Not all of Rosy:

The housing market in Detroit still needs improvement.

Goss claims that the percentage of Black borrowers’ mortgage applications rejected is higher than the percentage of White borrowers’ denials.

The reasons why the application is rejected also vary. Due to limited access to credit and income, Black individuals who want to buy a property are more likely to have their mortgage application rejected.

Due to a lack of collateral or the home’s valuation and worth, a white individual who wants to purchase a home is more likely to have their mortgage application rejected.

Detroit also has less reasonably priced homes. According to Goss, DFC is also searching for ways to lower the cost of purchasing a property.

“That is something we are investigating. Does the market require additional subsidies? “How can we provide affordable options for families who ought to own a home but may be priced out?” she said.

• This report was based on information from Detroit Future City.

This report was based on information from Detroit Future City.