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Index Shows 4th Q Decline in Housing Trends.(Brief Article)(Statistical Data Included)

Mortgage Servicing News

| March 01, 2002 | COPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

The Mortgage Guaranty Insurance Co.'s index of housing market trends showed a decline in the fourth quarter of last year, becoming one of the first measures of housing market conditions to show weakness.

But at the same time, MGIC said home prices continued to increase in every region of the country. To date, housing values have held up well despite the recession, boosted in large measure by historically low interest rates.

But the MGIC Market Trends Index fell to 6.90 in the fourth quarter of last year, down from 7.25 in the third quarter and 7.36 in the fourth quarter of 2000.

The index measures housing market conditions on a scale of one to 10, with 10 indicating the strongest conditions. A reading of ten indicates a strong market with no signs of deterioration. One represents a weak market with no signs of improvement.

A reading of seven indicates a stable market with no signs of imminent change.

The fourth-quarter reading of 6.90 is the lowest reported by MGIC since the first quarter of 1996. Neil Siegel, senior market analyst at MGIC, said the rating indicates that conditions remain stable throughout most of the 73 metropolitan ...

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Source: HighBeam Research, Index Shows 4th Q Decline in Housing Trends.(Brief...

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