During the two-year 1992-93 period, mortgage lenders subject to the Home Mortgage Disclosure Act (HMDA) reported 6,180,279 applications for mortgage loans to purchase 1-4 family homes located in metro counties -- including counties that lie partially within a metro area. For HMDA reporting purposes, metro areas are metropolitan statistical areas (MSAs) or primary metropolitan statistical areas (PMSAs), as defined by the U.S. Census Bureau. During this same two-year period, HMDA reporters also reported another 414,122 mortgage loan applications to purchase homes located in non-metro (rural) counties.

Unlike metro areas, where the vast majority of home mortgage loans are included in the HMDA database, in rural areas HMDA data provide only partial covergage of home mortgage lending activity. Nonetheless, the HMDA data reported for rural areas represent a substantial share of housing lending activity in these areas and provides valuable insight into the workings of the rural mortgage market.

HMDA data show that the approval rate for home purchase loan applications is significantly lower in rural areas than in metro areas. During the 1992-93 period, only 63% of such applications were approved in rural areas, compared to 77% in metro areas. This disparity suggests the presence of serious credit access problems in many rural areas.

HMDA data also show that approval rates for home purchase loan applications in rural areas are especially low for minority applicants. During the 1992-93 period, the approval rate in rural areas was 66% for White applicants, compared to only 45% for African-American applicants, 56% for Hispanic applicants, and 55% for American Indian applicants.

Home Mortgage Loan Approval Rates by State - listed separately for metro areas, rural areas, and applicant racial category.

Home Mortgage Loan Approval Rates by State - displayed on a county-by-county basis.