Rising Hispanic Homeownership in the Face of Adversity

June 27, 2023
8:00 am

The real estate market in 2022 started off with a bang due to the lowest interest rates on record. This ignited an intense competition for single-family homes in almost every major market, driving up home prices to record levels. However, the Federal Reserve raised interest rates aggressively, resulting in an increase from 3 to 7 percent in just seven months. This led to a challenging environment for first-time homebuyers, making affordability more difficult than ever. 

Despite these challenges, the Hispanic population has maintained a steady rise in homeownership for eight consecutive years. Resilient and persistent Hispanic homebuyers were identified as a consistent target audience by top-producing real estate professionals. This continued surge in Hispanic homeownership serves to elevate the overall homeownership rate in America.

The Hispanic homeownership rates has steadily risen, reaching almost 50% in 2022. This is an impressive feat, with Hispanics alone adding a net total of 349,000 homeowner households. This is partly due to their willingness to seek opportunities in new areas, especially in southern states like the Carolinas, Tennessee, New Mexico, Arizona and Florida.

Not only are Hispanics buying homes at a younger age, but many are also purchasing investment properties and buying multiple homes, thanks to their growing income and increasing education. Freddie Mac reports that 34% of Hispanics under 45 years old have the credit characteristics to qualify for a mortgage, and a third of Hispanics renting are mortgage-ready now, more than any other ethnic group. However, the current market still poses challenges, so Hispanics need better home improvement and renovation loans with low down payments.

Despite the rising cost of housing, Hispanics have found creative ways to purchase a home because they believe it is the best way to acquire wealth. Fortunately, many young Hispanics have the necessary credit to qualify for a mortgage. However, lenders should offer loan programs that encourage and support homeownership, including credit-building products, and the loan staff should represent the communities they serve.

In response to the increasing interest and demand from Hispanic homebuyers, Fathom has launched a Hispanic Division, focused on serving and educating our agents on this underserved demographic. By providing tailored guidance, the Fathom Hispanic Division is committed to supporting the dream of homeownership for all Hispanics.

Join our team of successful agents today and experience the Fathom Realty difference! Visit us HERE to learn more.