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Yes, they are 'on the down low.'
Given that an alarmingly large proportion of young black males experience time in penal institutions (compared to percentages of other races), and yes, the impressive amount of braggadocio and dick-swinging swagger inherent in the culture, there is in fact plenty of homosexual activity going on between young black men.
Of course, they often adopt the attitude of "it doesn't count" if it happens in prison, but even out in polite society it isn't at all uncommon for some hardass thug to get his dick sucked by one of his homies on a regular basis. It's kept "on the down low," however, and not mentioned otherwise.
If you doubt this, consider the tendency of the most loudly and zealously homophobic to condemn all things gay to actually engage in some of the more filthy stereotypical gay behaviors.
Note the similarly rampant and aggressive homophobia among black men in particular.