The City with the Highest Mortgage Denial Rate Is …

Apr 24, 2018

Prospective homebuyers in search of American Dream may have a tougher time purchasing a house below the Mason-Dixon Line, according to a new data analysis from LendingTree.

Although the national mortgage application denial rate is 8 percent, seven of the top 10 states for mortgage denials were in the South. Birmingham, Ala., led the country with a 13 percent denial rate, which was primarily blamed on credit history. New Orleans placed second with a 12 percent denial rate that was to problems with applicants’ credit history and debt-to-income, while Memphis came in third with a 12 percent denial rate pegged to credit history woes.

Rounding out the list of the 10 states with the highest denial rates are Oklahoma City, Miami, Orlando, Rhode Island’s capital city of Providence, Tampa, Houston, and Connecticut’s capital city of Hartford. At the other end of the spectrum, Minneapolis-St. Paul had the lowest mortgage denial rate at five percent.

“The current housing market is particularly competitive,” says LendingTree Chief Mortgage Economist Tendayi Kapfidze. “The key for homebuyers is being well-educated on the homebuying process, enabling them to be well-prepared when they enter the market. Understanding the key reasons mortgages are denied can help borrowers avoid missteps and compete effectively to secure their dream home.”

About the author

Phil Hall

Link copied

Published

Apr 24, 2018

Analysis and Data

Monthly, Yearly Jump In New Home Sales In March

The growth coincides with roughly a quarter of builders saying they cut prices last month.

Sales of newly built, single-family homes in March jumped 8.8% month-over-month, reaching a seasonally adjusted annual rate of 693,000 units compared to February's revised 637,000 units, according to data released jointly today by the U.S. Census Bureau and the Department of...

Analysis and Data

Home Price Growth Expected To Remain Stagnant

Redfin Home Price Index shows 0.6% growth month-over-month

Redfin’s latest Home Price Index (HPI) echoed the findings of other HPIs reflecting quarter-one data, with prices remaining on a slight incline across the U.S. Home prices climbed 0.6% nationally in March on a seasonally-adjusted basis, matching February’s 0.6% month-over...