Efforts to desegregate schools through busing and integration policies in the US have been mildly successful. This paper presents evidence that the recent boom in mortgage credit availability has had significant effects on racial segregation in most urban areas. Increased mortgage credit supply has allowed marginal families to leave less affluent neighborhoods to join more desirable areas. Depending on the race — black, white, or hispanic — of these marginal families, segregation has either increased or decreased. This paper shows that making credit affordable in targeted areas can have effects comparable to busing and integration programs.