Why do women pay more for mortgages?

Follow             bakadesuyo on    Twitter

This paper documents women on average pay more for mortgages than men. The disparity cannot be fully explained by traditional variables such as mortgage features, borrower characteristics, and market conditions. While the persistence of gender disparity may suggest discrimination, we offer a different explanation: women pay higher rates because they are more likely to choose lenders by recommendation while men tend to search for the lowest rate. Our empirical test confirms that search effort is rewarded in marketplace, and suggests that gender disparity in mortgage rates may be addressed by policies aimed at improving women’s financial literacy and search skills.

Source: “Do Women Pay More for Mortgages?” from The Journal of Real Estate Finance and Economics

Follow me on Twitter here or get updates via email here.

Related posts:

Does earning a lot of money make it harder for a woman to find a husband?

Tall guys make more money. How about tall women?

Does how popular you were in high school affect how much money you make later in life?

Posted In:
Post Details