Women aren’t getting the best mortgage rate when getting a loan compared to men, but it’s not because of gender discrimination. It’s because women aren’t doing enough shopping when it comes to mortgage rates, a new study published in the Journal of Real Estate Finance and Economics finds.
Women tend to rely on recommendations from their friends when it comes to mortgage rates, while men are more likely to shop around and talk to several lenders in finding the best rate, the researchers note.
Researchers aimed to shed light on why a 2006 study found that women are 32 percent more likely to get a subprime mortgage than men.
Researchers suggest that “gender disparity in mortgage rates may be addressed by policies aimed at improving women’s financial literacy and search skills.”
Source: “When it Comes to Mortgages, Women Don’t Shop Enough,” AOL Real Estate (Nov. 18, 2011)