Wilmington Tops UGC Mortgage Index

Wilmington, N.C., has grabbed the top spot in the latest ranking of housing markets showing signs of improvement over the next two years based on a mortgage risk index maintained by United Guaranty Corp., Greensboro, N.C.The other top-ranked metropolitan statistical areas are: Phoenix; Charleston, S.C.; Fort Pierce, Fla.; and McAllen, Texas. The report is based on UGC's quarterly ACUFactor mortgage risk index, which projects geographic market risk for the top 200 MSAs over the next four to eight quarters, the company said. The index uses a scale of 1 to 10, with 1 representing the least likelihood of further declines in model variables, which include home prices, the local economy, population stability, and mortgage delinquency trends. Wilmington, with a score of 1 in the first quarter, had a low annualized home price appreciation rate of 3.2% in the third quarter of 2002 and has experienced stable employment levels and favorable income growth in recent quarters, UGC said. The other four MSAs had scores of 2 in the latest report. UGC can be found online at http://www.ugcorp.com.