I learned something new today and want to share it with you. Mortgage insurance companies rate the risk of appreciation versus depreciation. I guess it is obvious that they would but I never thought it would be public knowledge. See link and story summary below:
PMI’s Winter 2007 Risk Index Reflects Slowing Housing Market: “WALNUT CREEK, Calif., Jan. 24 /PRNewswire-FirstCall/ — Continued deceleration in home price appreciation and decreased affordability caused the risk of home price declines to rise in cities across the country, PMI Mortgage Insurance Co., the U.S. subsidiary of The PMI Group, Inc. reported today. Economic fundamentals remain strong in most areas, however, with historically low unemployment rates and strong job growth, which helps mitigate the risk of price declines.”