An index that measures mortgage risk by determining if the borrower has sufficient collateral to enable a lender to collect the balance on a delinquent loan says that mortgages are getting less risky in California. Mortgage risk fell in California by 13.4%, according to this index after nineteen straight months of year- over-year increases, according to HomeSmartReports.com. (Check here for a list by city.)
Au contraire says Berkeley economist, Ken Rosen, a real estate specialist. In a recent San Franciso Chronicle article, he points out that an increase of loans made with payments that rise over time (adjustable rate mortgages) in combination with price declines in housing has left the market less stable, not more stable as the index proclaims.
Well, dear reader, is your glass half-empty or half-full?