Skip to main content

Study: Reservation Indians Pay Higher Mortgage Rates

Oct 07, 2019
Photo credit: Getty Images/Rixipix

American Indians who live on tribal reservations pay nearly two percentage points more on mortgage rates than the general population, according to a study from the Federal Reserve Bank of Minneapolis’ Center for Indian Country Development (CICD).
 
The study, titled “The Higher Price of Mortgage Financing for Native Americans,” noted that an Indian family that buys a residential property on a reservation for $140,000 home could pay $107,000 more during the span of a 30-year fixed-rate mortgage compared to homeowners living outside of the tribal lands. The study concluded that roughly 30 percent of home loans made to American Indian and Alaska Natives for reservation properties came with higher interest rates, and manufactured homes accounted for 25 percent to 35 percent of the difference in the cost of financing.
 
The report concluded that “without other institutional market reforms, promoting homeownership as a method of increasing Native American equity and assets may be less effective than for other populations.”
 
“This report should serve as notice to policymakers, lenders, and housing advocates that there is an urgent and deeply troubling issue around housing and mortgage costs across Indian Country,” said Minneapolis Fed Assistant Vice President and CICD Director Patrice Kunesh.

 
About the author
Published
Oct 07, 2019
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024