Author(s): Joshua Bosshardt (FHFA), Simi Kedia (Rutgers University), and Tim Zhang (University of Texas at San Antonio)
Abstract: Using 24 million appraisals for refinance mortgages over the January 2013 to March 2024 period and comparing homes in the same census tract and year-quarter, we find that homes of single female households are appraised for 2.4% less than those of single men. Appraisers make lower adjustments to comparable properties and give worse house condition ratings for single female homes. The gap is less pronounced when borrowers have unisex names and when appraisers have greater exposure to single female homeowners. The lower appraisal values of single female households are associated with higher interest rates, lower loan amounts and lower cash-out amounts in the refinancing. Our findings indicate that the gap in appraisals may be one reason for (female) homeowners’ sluggish refinancing activity and the gap in household wealth.
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