Hispanics are an increasingly significant segment of the homebuying population. According to projections from the Urban Institute, approximately 70 percent of new homeowners are Hispanic by 2040. However, the combination of rising interest rates and escalating home prices has exacerbated affordability issues for homebuyers, particularly among Hispanics, many of whom are young and first-time homebuyers (FTHBs).
Hispanic Homebuyers Are Younger than Their Non-Hispanic Counterparts
In general, Hispanic homebuyers tend to be younger than their non-Hispanic counterparts (Figure 1). In 2022, around 40 percent of Hispanic homebuyers were under the age of 35, compared with 36 percent of non-Hispanic homebuyers. Due to their younger age, these buyers are more likely to have limited savings and are often FTHBs.
Majority-Hispanic Area Share Increased Slightly in 2023
Figure 2 compares the annual trends in the majority-Hispanic area’s share of all first-lien home purchase loan originations, using data from the Home Mortgage Disclosure Act (HMDA) and CoreLogic public records. In this case, a “majority-Hispanic area” is any census tract with a Hispanic or Latino population of at least 50 percent using the U.S. Census Bureau’s American Community Survey (ACS) data.
While HMDA data for 2023 is not yet available, Figure 2 illustrates the most recent trend using CoreLogic data through August 2023, which has closely mirrored HMDA patterns in prior years. We observe a continued increase in home loans to majority-Hispanic areas, rising from 6.6% in 2022 to 6.8% in 2023. 
Majority-Hispanic Areas Have Larger Share of Federal Housing Administration Loans
Notably, Federal Housing Administration (FHA) insured loans tend to have a higher share of low-income and high-minority census tract lending than do conventional loans, including majority-Hispanic areas (as shown in Figure 3).  Both the share of FHA loans and conventional loans in these areas saw slight increases in 2023.
Denial Rates Are Higher for Hispanic Borrowers and Borrowers in Majority-Hispanic Areas
Despite a slight overall increase in the denial rate for home purchase mortgage lending in 2022, the denial rate is higher for both Hispanic borrowers and borrowers in majority-Hispanic areas compared with their non-Hispanic counterparts.
In 2022, the overall denial rate for home-purchase loans among Hispanic borrowers stood at 13%, whereas it was only 9% for non-Hispanic borrowers (Figure 4). According to HMDA data, the debt-to-income ratio is the primary reason for denied mortgage applications across all borrowers, and it is 3 percentage points higher for Hispanic borrowers compared with their non-Hispanic counterparts.
Despite these challenges, it’s anticipated that the share of loans originated to homebuyers in majority-Hispanic areas and Hispanic borrowers will increase. This trend is expected as most of the Hispanic population reaches the average age of FTHBs. Based on the 2020 census data, Hispanics are also one of the fastest-growing demographic part of the U.S. population. Thus, Hispanic FTHBs share is likely to increase in coming years.
CoreLogic will continue to monitor and share future trends as data becomes available.
For all the latest housing market data and trends, keep tabs on CoreLogic’s Office of the Chief Economist’s blog home page.
 U.S. Census Bureau, 2017-2021 ACS five-year estimates
 As per HMDA, the share of home purchase loan to Hispanic-White borrowers was 9.1 percent in 2022
 Loans that are not insured or guaranteed by the government (such as FHA, Department of Veterans Affairs or Department of Agriculture loan programs) are conventional