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Index Shows 4th Q Housing Decline.(Mortgage Guaranty Insurance Corp. report)(Brief Article)
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 ...
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