AUSTIN, Texas–It isn’t rising rates but collapsing oil prices that are the best indicator of where future housing problems might emerge, according to a new forecast.
The plunging price of crude oil has stopped once hot housing markets in their tracks, according to Arch Mortgage Insurance Co. In AMI’s winter report on the housing market, the company noted that five Texas cities are atop its ranking of housing risk in the 50 largest metropolitan areas.
AMI ranked Houston as the nation’s riskiest market this winter, with a 36% chance of home price declines within the next two years. That city was followed by Austin, Dallas, Fort Worth and San Antonio – all with a 26% risk of home losses.