The latest PMI report (pdf) is out, and much to no one’s surprise, Seattle’s risk index has increased yet again.
Jumping 14 points from the fall to a total of 167, Seattle now boasts a PMI that is 2.6 times its Summer 2005 low of 64. Although Seattle’s Risk Index is still a good margin below regions such as San Diego or Sacramento, it is certainly interesting to note that it has now increased in five of the last six PMI reports.
But don’t you worry, Seattle is special and all that. Surely price growth will simply stabilize, and the Risk Index will head back down.
(PMI Mortgage Insurance Co., Winter 2007 Report (pdf), 01.2007)
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1
T,V & Mr.B
// Jan 29, 2007 at 2:53 pm
Had this little public service announcement come through my office today. I think it pertains to the topic of risk. I like how he uses the term “perverted” when discussing using ARMS etc…
“Offering people long-term credit secured by a mortgage on a single family home has been one of the tools that helped fuel the American dream of home ownership,” opined Patrick McGilvray, J.D., President of http://www.TheHomeBuyingCenter.com. He continued, “In recent years though, this tool has become perverted and only a very few will ultimately profit. In years past people could not buy a home until they showed that they had the discipline, or luck, to be able to provide a 20% deposit on the home they wanted. I believe that 100% financing arrangements and the proliferation of ARMs will ultimately hurt the American consumer and our economy as a whole.”
2
Puget Sounder
// Jan 29, 2007 at 8:37 pm
Great, that makes me feel so much better about considering this home.
http://tinyurl.com/3×3utf
$389k, $450+/sq feet, fairly distant from downtown with no water view either…but hey, it’ll never go down…right? (sarcasm)
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