The foreclosure crisis has hit blacks harder than any other group in America and it will be tough for them to regain their footing in the housing market.I'll remind everyone that the attitude of the Federal Reserve during the growing housing bubble was that it was best to just let bubbles grow unimpeded and then mop up the mess afterward. That hasn't worked out too well.
Blacks' homeownership rate has plummeted nearly 6 percent to 46.2 percent since its peak in 2004. That's more than twice that of any other racial or ethnic group, as well as the nation's rate as a whole, which fell only 2.3 percent, according to U.S. Census data.
Also, among recent borrowers, nearly 8 percent of blacks have lost their homes to foreclosure, compared to 4.5 percent of whites, according to the Center for Responsible Lending. Latinos, who have also been pummeled by the mortgage meltdown, came in a close second behind blacks in foreclosure losses.
The consequences are devastating. Fewer blacks own their home now than any other racial or ethnic group and that makes it even more difficult for them to achieve financial security and attain wealth.
Friday, October 29, 2010
African Americans hardest hit by collasping housing bubble