Hispanic homeownership hit by tight credit

Photo credit: Michael Patrick

The NAHREP's report, which will be published next week, reveals that there was a net increase of 54,000 new Latino homeowners during 2014. Hispanics formed 320,000 new households in 2014, which represented about 40 percent of all new households nationwide.

Georgia (107,000), Arizona (96,000) and North Carolina (95,000) had large Hispanic population growth, ranking just behind Texas, California and Florida.

Despite the increase, though, Latino homeownership rates dropped during 2014 from 46.1 to 45.4 percent, the lowest level since 1999.

The five-year low has been attributed to tight mortgage credit and higher financing costs. 100 of the top agents surveyed by the NAHREP ranked tight mortgage credit, housing affordability and down payments as the main three barriers to Hispanic homeownership.

Despite formidable challenges, agents expect 2015 to be a breakout year, with 65 percent of the agents surveyed forecasting a stronger year for Hispanic homebuyers.

"The State of Hispanic Homeownership Report shows gains in employment, education and income for Latinos, representing the huge influence Latinos have, not only in the housing market, but on the U.S. economy as a whole," says Jason Madiedo, president of NAHREP.

"Access to affordable mortgages for Latino homebuyers would help sustain a healthy housing market and benefit a general economic recovery."