Bridging the Gender Gap: Social Norms, Math Scores and Mortgage Outcomes

Abstract

Analyzing a near-universe sample of conventional, conforming mortgages in the United States originated and securitized between 2018 and 2019, we find that single women pay higher mortgage interest rates compared to single men and are also less likely to refinance when interest rates decline. This gender gap in mortgage rates and refinancing behavior is especially notable in affluent neighborhoods with high incomes, levels of education, and socioeconomic status. Part of this gap can be attributed to differences in math scores between genders during elementary and middle school, and gender gaps in financial literacy skills, which increase with income and education. These findings align with prevailing gender stereotypes and societal norms, contributing to disparities in financial sophistication that result in comparatively less favorable financial outcomes for women.

Keywords: Gender gap, mortgages, gender stereotypes, math test scores, financial literacy