The high mortgage rates of 2023 strained housing markets and slowed down home sales, and the expectation that the Federal Reserve Bank would cut interest rates in 2024 did not manifest. Unexpectedly, 2024 ushered in fluctuating mortgage rates that created widespread uncertainty in the broader housing market. THDA’s Great Choice Home Loan programs were not immune to the fluctuations of the housing markets in 2024. High home prices, interest rates, and broader market volatility continue to adversely impact potential homeowners, particularly those eligible for THDA mortgages.

This brief utilizes HMDA data from 2018 to 2021 to better understand how refinance loans were utilized by Tennesseans before and during the COVID-19 pandemic. Despite the benefits of refinancing one’s mortgage, we find that, in Tennessee, refinance loan originations were significantly lower for Black and low or moderate income (LMI) homeowners than their counterparts. We also find that denial rates alone are not a sufficient explanation of the racial disparities in refinance loan originations.