Even with the same income, white heads of households were three times more as likely as black household heads to claim a mortgage interest tax deduction (MITD) and 31% more likely than women household heads, according to an analysis from Trulia's Blog. Staffer Felipe Chacon seeks to explain why.
To find out, we examined a big slice of U.S. households using the Census’ 2014 American Community Survey, accounted for age and income effects and looked at who had borrowed to buy a home. In other words we created an even playing field where race, ethnicity and gender were the only criteria separating the potential mortgage holder. So by age, income and geography our study group was the same.
Even when they make as much as white men, our analysis suggests women and minorities are still less likely to have a mortgage. And thus unable to take advantage of the mortgage interest tax deduction.