The approval rate of home purchase mortgage loan applications (conventional) is the total number of loans originated and loans approved but not accepted for the area's residents, divided by the total number of loan applications with action taken for area residents. It measures the percent of loan applications approved for home purchases. In order to average out seasonal and annual fluctuations, it is averaged over two years.
The percent of approved home purchase mortgages measures the financial security of residents in a community. It can serve as a proxy for the amount of wealth of residents, which has been linked to health outcomes. Wealth provides financial security and access to resources that promote opportunities for better health1. The ability to purchase a home also prevents homelessness, which also produces poor health outcomes such as mental illness, drug dependence, infection, physical and psychological stress, malnutrition, and mortality2.
1 California Newsreel, Nationality Minority Consortia, Joint Center Health Policy Institute. Unnatural Causes: Is Inequality Making Us Sick?Â http://www.unnaturalcauses.org/resources.php?topic_id=7
2 National Health Care for the Homeless Council. http://www.nhchc.org/Publications/basics_of_homelessness.html
Data is from the Home Mortgage Disclosure Act, Aggregate Reports - Loan Application Register (LAR), 2006-07
and FFIEC Census Reports 2006-07