The literature on racial differences in mortgage interest rates is mixed depending on samples, sample period, and product types. We examine the mortgage loans originated during the period between 2011 and 2019 from the 2013, 2016 and 2019 waves of the Survey of Consumer Finance, using the weighted regressions with repeated imputation inference (RII) method. During the whole sample period, Hispanics and Blacks paid 40 and 22 basis points (bp) higher rates than Whites at one percent and ten percent statistical significance levels, respectively, after loan characteristics such as term and adjustable rate and borrower credentials like net worth and debt to income are controlled for. An analysis with time trend shows that Blacks pay higher rates by 56 bp in the base year but the gap decreased by 6.6 bp per year; loan pricing gap disappeared by the end of sample period. Hispanics, however, do not experience the reduction in rate differentials over time.

Accepted Oral Presentation