Homebuying in rural communities is on the rise: Last year mortgages for home purchases increased at a faster rate in rural communities than in the rest of the country. What’s more, rural borrowers paid significantly higher rates of interest than urban or suburban home buyers, according to a newly released analysis of the Home Mortgage Disclosure Act by Keith Wiley, senior research associate at the Housing Assistance Council.
Rural home purchase originations climbed by nearly 7 percent in 2014 year-over-year. Meanwhile, the overall national increase in home purchases increased 4 percent.
Rural home buyers are paying higher interest rates than urban or suburban buyers. About 15 percent of all rural home purchase loans were classified as “high cost” last year – that’s up from 11 percent in 2013. The rate of rural high cost lending is about 4 and 3 percentage points higher than the rate for suburban and urban loans.
Source: “Rural Communities Attract More Buyers,” Real Estate Economy Watch (Oct. 9, 2015)