Newsweek
Mortgage rates have been hovering in the high 6 percent range for a 30-year fixed loan, but some states see tougher odds of homebuyers getting approved.
In a new National Association of REALTORS® (NAR) report, some states saw far lower mortgage approval rates than others.
Certain states experienced higher mortgage application denial rates in 2023, according to the NAR report.
Mississippi, Louisiana and West Virginia had the highest denial rates at 19, 18 and 15 percent, respectively. Alaska, North Dakota and Nebraska had considerably lower denial rates, from 5 percent to 6 percent.
Income and credit are critical factors for homebuyers when trying to get approved for a mortgage, and states where people have lower incomes may see higher denial rates.
Access to credit and mortgages continues to be a barrier for Americans, especially for certain demographic groups. Black (21 percent) and Hispanic applicants (17 percent) are denied at much higher rates for a mortgage compared to their white (11 percent) and Asian peers (9 percent).
Analysts say natural disasters, like floods or wildfires, also create a barrier when it comes to homeowners' insurance for many would-be buyers.
Across the country, Delaware, Mississippi and North Carolina had the highest homeownership rates, all in the 80 percent range or above.