Welcome to our 2023 Homebuyer.com Home Mortgage Disclosure Act (HMDA) study.
Homebuyer.com is a mortgage lender for first-time home buyers. In our annual home buyer study, we present mortgage statistics parsed from 16.1 million mortgage applications given by U.S. home buyers last year and 100.6 million mortgage applications since 2018.
Our data source is the FFEIC, which collects mortgage application data from U.S. lenders per Regulation C. Data is stripped of personally-identifiable information, then sorted by race, gender, ethnicity, plus dozens of other criteria.
This article was initially published on June 29, 2023. It will update with new analysis through July 2023. The release notes and publishing history is below:
- June 29, 2023: Initial publish date to coincide with FFEIC HDMA data release date
- June 30, 2023: Updated with additional insight from the 2022 Snapshot Loan Level Data Set
- July 4, 2023: Updated with Borrower Creditworthiness statistics
- Mid-July 2023: Updated with additional Borrower Demographics and Mortgage Lender statistics
- August 5, 2023: Updated with additional Mortgage Lender statistics
We encourage you to read our study methodology and cite this study in research, website, and newscasts. Please use proper attribution as described at the bottom of this article.
HMDA Data For U.S. Home Buyers
As part of our annual study, we answer basic questions about U.S. home buyers and their mortgages, including:
- How many home buyers applied for a mortgage?
- How many mortgage applications were approved?
- How many mortgage applications were denied?
Next, we delve into second-degree mortgage statistics like:
- What was the mortgage approval rate by race?
- What is the total cost of homeownership by gender?
- What was the debt-to-income of an approved mortgage by race?
Lastly, we make comparison mortgage statistics such as:
- Are men more likely to get approved for a mortgage than women?
- Do home buyers of different races get different mortgage terms?
- Do home buyers get different mortgage rates based on where they live?
Homebuyer.com writes our annual HMDA study to promote decency and fair treatment for first-time home buyers.
TABLE OF CONTENTS
- →What Is The Home Mortgage Disclosure Act (HMDA)?
- →Home Buyer Mortgage Statistics
- →Mortgage Statistics by Borrower Demographics
- →Mortgage Statistics by Borrower Creditworthiness
- →Mortgage Statistics by Loan Characteristics
- →Mortgage Statistics by Property Characteristics
- →Mortgage Statistics by Lender Identification
- →Methodology
- →How To Share Our Research
What Is The Home Mortgage Disclosure Act (HMDA)?
HMDA is short for the Home Mortgage Disclosure Act. Pronounced “HUM-duh”, HMDA requires lenders to share data about the mortgage loans they do and don’t make.
The government’s HMDA reports are the most comprehensive public database for U.S. mortgage market activity. It’s a crucial fairness check on mortgage lenders and their behaviors.
The Federal Financial Institutions Examination Council (FFIEC) and the Consumer Financial Protection Bureau (CFPB) govern HMDA reporting. The agencies require lenders to file annual reports with extensive, loan-level details.
The complete HMDA dataset is 99 fields, which can be bucketed into five categories:
- Borrower demographics
- Borrower creditworthiness
- Loan characteristics
- Property characteristics
- Lender Identification
This annual study starts with a general category, then expands into the above five categories to reveal the state of mortgage lending and mortgage market activity nationwide. Data is compiled from the HMDA Snapshot Loan-Level Datasets as available on the CFPB website.
Home Buyer Mortgage Statistics
How many mortgage applications do consumers make each year?
Scope: Mortgage applications for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between the years 2018-2022.
Key Takeaway
In 2022, mortgage applications fell 48% as mortgage rates climbed.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
How many mortgage applications do lenders approve each year?
Scope: Mortgage applications for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022.
Key Takeaway
The mortgage application approval rate fell 5% in 2022 from the year prior.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
How many purchase mortgage applications do home buyers make each year?
Scope: Mortgage applications from home buyers for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022.
Key Takeaway
Home buyer mortgage applications remain stable despite changes in market conditions and mortgage rates.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
How many purchase mortgage applications do lenders approve each year?
Scope: Mortgage applications from home buyers for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022.
Key Takeaway
In 2022, mortgage lenders approved 72% of purchase mortgages – the lowest in 5 years.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
With how many mortgage lenders do home buyers comparison shop, on average?
Scope: Mortgage applications from home buyers for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022.
Key Takeaway
In each of the last 5 years, more home buyers are comparison shopping their mortgage terms.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
Mortgage Statistics by Borrower Demographics
The next section of our home buyer study focuses on borrower demographics.
Borrower demographics refer to specific characteristics of mortgage applicants, such as gender, race, ethnicity, and age. We use HMDA data to measure purchase mortgage applications and their outcome by demographic group.
To ensure fair comparisons among various demographics, we normalized and grouped HMDA records by creditworthiness, which can be summarized as loan-to-value, debt-to-income, and credit score.
We only included home buyers whose household income is 80 percent of the area median income or great, whose debt-to-income ratios are 45% or less, and whose credit scores are mortgage-qualifying.
What is the distribution of purchase mortgages by race?
Scope: Purchase mortgage applications for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022.
Key Takeaway
Non-white home buyers represent a growing share of the U.S. housing market.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the average home buyer mortgage loan size by race?
Scope: Purchase mortgage applications for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022.
Key Takeaway
Black or African American home buyers saw the largest increase in average mortgage loan size in 2022, gaining 11.02% from the year prior.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the total cost for homeownership by race?
Scope: Purchase mortgage applications for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022. Total homeownership cost is calculated as the cost to pay a mortgage to term inclusive of loan origination fees minus lender credits.
Key Takeaway
Non-white home buyers pay more to pay off their mortgages in all home price ranges, which suggests a systematic disadvantage.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the mortgage approval rate for home buyers by race and household income?
Scope: Mortgage applications for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022 where the mortgage applicant earns at least 80% of the area median income, has a debt-to-income ratio of 45% or below; and, where at least 100 mortgage applications were submitted in the given category.
Key Takeaway
In all income brackets, mortgage applications of Black and African American home buyers are approved at half the rate of White and Asian home buyers.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the mortgage approval rate for home buyers by ethnicity and household income?
Scope: Mortgage applications for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022 where the mortgage applicant earns at least 80% of the area median income, has a debt-to-income ratio of 45% or below; and, where at least 100 mortgage applications were submitted in the given category.
Key Takeaway
In all income brackets, mortgage lenders approve fewer mortgages for Hispanic or Latino home buyers than other ethnicities.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the distribution of mortgages for single-applicant mortgages by age?
Scope: Mortgage applications for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022.
Key Takeaway
In 2022, Generation Z home buyers, aged 18-24, accelerated the rate at which they buy homes without the help of a co-applicant.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the distribution of mortgages for multiple-applicant buyers by age?
Scope: Mortgage applications for first-lien, owner-occupied, residential mortgages for 1-4 unit homes between 2018-2022, based on age of primary mortgage applicant.
Key Takeaway
In 2022, the proportion of mortgages issued to home buyers aged 25-34 surged 24.5%.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the average loan size by home buyer age?
Scope: First-lien, owner-occupied, residential purchase mortgages for 1-4 unit homes between 2018-2022, based on age of primary mortgage applicant.
Key Takeaway
Despite the different stages of their respective careers, home buyers in the 25-34 and 55-64 age groups use similar-sized mortgages.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the total cost of homeownership by home buyer age?
Scope: Funded first-lien, owner-occupied, 30-year, conventional residential purchase mortgages for 1-unit homes between 2018-2022, based on age of primary mortgage applicant. Total homeownership cost is calculated as the cost to pay a mortgage to term inclusive of loan origination fees minus lender credits.
Key Takeaway
As loan sizes increase, home buyers aged 18-24 get worse mortgage terms compared to other age groups.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the market share for single-applicant home buyers by gender?
Scope: First-lien, owner-occupied, residential purchase mortgages for 1-4 unit homes between 2018-2022. Data omitted for buyers self-reporting as a gender other than male or female.
Key Takeaway
Among single-applicant home buyers in 2022, males outnumber females by a 3:2 margin.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the average loan amount for single-applicant home buyers by gender?
Scope: Funded first-lien, owner-occupied, 30-year residential purchase mortgages for 1-unit homes between 2018-2022. Data omitted for buyers self-reporting as a gender other than male or female.
Key Takeaway
In the last five years, among single-applicant home buyers, average loan sizes for males grew 43% versus 39% for females
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the total cost of homeownership by single-applicant home buyer gender?
Scope: Funded first-lien, owner-occupied, 30-year, conventional residential purchase mortgages for 1-unit homes between 2018-2022. Data omitted for buyers self-reporting as a gender other than male or female. Total homeownership cost is calculated as the cost to pay a mortgage to term inclusive of loan origination fees minus lender credits.
Key Takeaway
As home prices increase, single-applicant females are less likely than males to get the best mortgage terms.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the average loan size by the number of home buyers?
Scope: First-lien, owner-occupied, residential purchase 30-year mortgages for 1-unit homes between 2018-2022.
Key Takeaway
The average loan size for a multi-applicant purchase mortgage is 17.7% higher than for single-applicant.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the total cost of homeownership by number of borrowers?
Scope: Funded first-lien, owner-occupied, 30-year, conventional residential purchase mortgages for 1-unit homes between 2018-2022. Data omitted for buyers self-reporting as a gender other than male or female. Total homeownership cost is calculated as the cost to pay a mortgage to term inclusive of loan origination fees minus lender credits.
Key Takeaway
As home prices increase, single-applicant home buyers are less likely than multiple-applicant home buyers to get the best mortgage terms.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
Mortgage Statistics by Borrower Creditworthiness
The next section of our home buyer study focuses on borrower creditworthiness.
HMDA law requires lenders to report three data points linked to creditworthiness: applicant credit score and debt-to-income ratio, and mortgage loan-to-value. These characteristics are also known as the 3 Cs of mortgage lending – credit, capacity-to-repay, and collateral.
- Credit scores measure the probability that a person will make on-time payments to their lender
- Debt-to-income ratio measures a person’s available monthly cash flow
- Loan-to-value measures the size of a home buyer’s down payment
The data in this section shows how creditworthiness affects a home buyer’s opportunity to get a mortgage approved.
What is the home buyer mortgage approval rate by debt-to-income ratio?
Scope: Mortgage applications for first-lien, 30-year residential purchase mortgages for 1-4 unit homes between 2018-2022.
Key Takeaway
Mortgage lenders approve more than half of home buyer mortgage applications where debt-to-income ratio exceeds 50%.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the home buyer mortgage approval rate by debt-to-income and race?
Score: Mortgage applications for first-lien, 30-year residential purchase mortgages for 1-4 unit homes between 2018-2022.
Key Takeaway
Mortgage lenders deny mortgage applications for American Indian or Alaska Native home buyers more often than other racial groups in every debt-to-income category.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
Mortgage Statistics by Loan Characteristics
The following section of our home buyer study examines Loan Characteristics.
HMDA regulations mandate lenders to provide 26 loan-level details about the applications submitted by buyers, including mortgage type, loan amount, and loan term.
- Mortgage type is whether a mortgage is a conventional loan, FHA loan, VA loan, or USDA loan
- Loan amount is the amount of money borrowed to purchase a home
- Loan term is the length of the mortgage loan, in years
We also include data comparing adjustable-rate mortgages and fixed-rate mortgages.
The mortgage statistics in this section show how the characteristics of a loan may influence a home buyer’s mortgage approval and interest rate.
What are the most common mortgage loan types used by home buyers?
Scope: Funded first-lien, owner-occupied, 30-year residential purchase mortgages for 1-unit homes between 2018-2022.
Key Takeaway
Fannie Mae and Freddie Mac increased their market share among home buyers 5.6 percentage points in the last five years.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What’s the average mortgage loan size for home buyers by loan type?
Scope: Funded first-lien, owner-occupied, 30-year residential purchase mortgages for 1-unit homes between 2018-2022.
Key Takeaway
In 2022, the largest average loan size belonged to military borrowers and their VA loans.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the mortgage loan size distribution for home buyers?
Scope: Funded first-lien, owner-occupied, 30-year residential purchase mortgages for 1-unit homes in 2022.
Key Takeaway
In 2022, there was a spike in mortgages between $600,000-$650,000 to home buyers, which corresponded with that year’s conforming mortgage loan limit increase to $647,200.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the mortgage loan term distribution for home buyers?
Scope: Funded first-lien, owner-occupied, 30-year residential purchase mortgages between 2018-2022.
Key Takeaway
The popularity of the 30-year mortgage loans is unparallele`d, with over 93% of borrowers choosing this term each year from 2018 to 2022.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
Mortgage Statistics by Property Characteristics
In our study’s Property Characteristics part, we look at how property details play into mortgage statistics. These characteristics include the type, location, and purpose of the property.
Property type refers to the kind of property for which a mortgage is sought. This could be a single-family home, a multifamily property, or a manufactured home. The property type can affect the chances of loan approval and the mortgage interest rate offered.
Another aspect is the property’s location. This can be in a rural, suburban, or urban area. Lenders might look at the property’s location when deciding whether to approve a mortgage. In some cases, they may offer different mortgage rates based on the geography.
The purpose of the property matters, too. The property could be a primary residence, a second home, or an investment property. Lenders often offer different rates and approval criteria based on the property’s purpose.
The subsequent section of our HMDA study explores property characteristics and mortgage approvals.
HMDA rules require mortgage lenders to record details about properties linked to their mortgage applications and funding, including home value, property type, and occupancy.
- Home value is the home’s purchase price or appraised value, whichever is lower
- Property type is the property’s unit count, from 1-unit to many units
- Occupancy indicates whether the home is a buyer’s primary residence, second home, or investment property
For purposes of this home buyer study, we filtered HMDA records for 1-4 unit homes only that are purchased as a primary residence except as noted.
What percentage of home buyer mortgages are for primary homes, vacation homes, and investment properties?
Scope: Funded first-lien 30-year residential purchase mortgages between 2018-2022.
Key Takeaway
Rising mortgage rates in 2022 slowed the financing of second homes and investment properties for U.S. consumers.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What are the most commonly used mortgage types by number of units?
Scope: Funded first-lien 30-year residential purchase mortgages between 2018-2022.
Key Takeaway
Military home buyers purchase and occupy 4-unit homes as investments nearly twice as often as 2-unit homes.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the distribution of 1-unit, 2-unit, 3-unit, and 4-unit homes?
Scope: Funded first-lien 30-year residential purchase mortgages between 2018-2022.
Key Takeaway
70% of home buyers use conventional mortgage financing. 17.6% use FHA financing.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
Mortgage Statistics by Lender Identification
In the Lender Identification portion of our study, we explore the role of the lender in mortgage applications. Each lending institution has its strategies, policies, and practices. These factors can affect the approval rates, fees, and interest rates they offer.
Lender Identification is not about individual loan officers but the institutions they work for. Lenders can range from big banks to small credit unions and traditional lenders to online-only platforms.
Some lenders may specialize in certain types of loans or cater to specific borrower demographics.
Understanding lenders’ roles and practices can provide valuable insights for prospective home buyers. In this section, we analyze the HMDA data to reveal the impact of lender identification on mortgage applications and approvals.
How many mortgage companies work with home buyers?
Scope: Funded first-lien 30-year residential purchase mortgages between 2018-2022.
Key Takeaway
The number of mortgage lenders working with home buyers dropped 10.1% in the five years ending 2022.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What percentage of mortgage companies do refinance loans only, by year?
Scope: Funded first-lien 30-year residential purchase mortgages between 2018-2022.
Key Takeaway
In 2022, 3.2% of mortgage lenders did refinance business only.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
How are purchase mortgages distributed among mortgage companies?
Scope: Funded first-lien 30-year residential purchase mortgages between 2018-2022.
Key Takeaway
In 2022, just 10 mortgage lenders were responsible for 25.69% of purchase mortgage fundings nationwide.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
What is the concentration of funded purchase mortgages among mortgage companies?
Scope: Funded first-lien 30-year residential purchase mortgages between 2018-2022.
Key Takeaway
In 2022, the largest mortgage lender for home buyers funded 4.5% of purchase mortgages.
Data: FFEIC / Source: Homebuyer.com HMDA Mortgage Data Study
Methodology at https://homebuyer.com/learn/hmda-mortgage-statistics
Methodology
The data for our study was gathered from the FFEIC website, specifically the Snapshot National Loan Level Dataset for 2018-2023. These Snapshot files contain national HMDA datasets as of April 30, 2022, from all HMDA reporters. The data was modified by the Bureau to protect applicant and borrower privacy.
To keep our study focused, we filtered the data specifically for home buyers. We removed mortgage applications for purposes other than buying a home, including home construction and refinancing. We limited the study’s scope to properties with 1-4 units. We did not include open-ended mortgages in first-lien positions including home equity line of credit (HELOC) mortgages, and excluded reverse mortgages from our analysis.
HMDA records enumerate seven mortgage application outcomes, which the LAR data field schema labels action_taken. We grouped HMDA records according to action_taken as follows:
- Successful: Applications that resulted in funded mortgages
- Unsuccessful: Applications not approved by a mortgage lender
- Deferred: Applications withdrawn by the home buyer or closed due to incompleteness
- Offer Declined: Applications approved by the lender but not accepted by the home buyer
Our analysis was performed using database queries. This allowed us to efficiently sift through the large dataset and pull out the most relevant information. We removed outlier data, mostly linked to mortgage applications that applicants either withdrew or that lenders denied due to incompleteness, that fell outside of typical and expected ranges.
Less than one-half of one percent of HMDA was excluded for reasonability reasons.
Despite the completeness of the HMDA data, our study required additional calculations to answer more complex questions. Relative percentages and comparison figures were derived from more advanced calculations.
To ensure the accuracy of our study, we relied on the robustness of the HMDA data and the precision of our database queries. The stringent process of data extraction, filtering, and analysis contributed to the reliability of our results.
How To Share Our Research
Homebuyer.com conducts our annual HMDA mortgage data research to help home buyers understand the mortgage market and promote decency and fair treatment for first-time home buyers.
Our detailed findings can be shared across social media platforms, personal blogs, and online forums or used in academic and professional presentations. However, we request that you adhere to the following attribution guidelines while doing so:
- Please include highlights from the study only. Do not copy images or tables.
- You must include a link to the complete study on the Homebuyer.com website.
- You must link to this page URL using one of these three terms: “Mortgage Statistics”, “HMDA Mortgage Data”, or “Homebuyer.com”.
- Avoid misrepresentation by not altering our findings.
By sharing our HMDA mortgage data study and following these guidelines, we can work together to promote a fair and transparent mortgage lending environment for all home buyers.
For follow-up information and usage rights for our research, please email our team at hello@homebuyer.com. We would love to help you do more with our data.
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