PMI Risk Index Improves

There is about a one-in-seven chance of a general decline in home prices over the next two years, according to the PMI Risk Index, which has improved in recent months.The average value of the index for the 50 largest metropolitan statistical areas stood at 140 in May, down from 174 in February, said PMI Mortgage Insurance Co., the Walnut Creek, Calif.-based mortgage insurer that created the index. The index value means that these cities have on average a 14.0% probability of experiencing a home price decline in the next two years. San Jose, Calif., topped the index with a 442 (and therefore a 44.2% chance of a decline), followed by Denver, with 307, and the Charlotte-Gastonia-Rock Hill N.C.-S.C. MSA, with 303. PMI can be found online at http://www.pmigroup.com.