Homes in Black and Latino neighborhoods appraise for less than their agreed-upon purchase price more often than in white areas, according to new research from government-backed mortgage giant Freddie Mac.
About 15.4% of single-family properties in majority-Latino census tracts and 12.5% of homes in majority-Black areas appraised lower than their contracted price between 2015 and 2020, Freddie Mac researchers found. The rate in white neighborhoods was 7.4%.