PMI Predicts Market Direction

An indicator you should know about is Private Mortgage Insurance's Risk Index, which measures the likelihood that home prices will be lower two years from now. The index measures the percent likelihood of a price decline and currently estimates that 13 of the nation's 50 largest metro areas now face a 50% or greater chance of lower prices - up from just 7 metro areas in the previous quarter.

These are the Metropolitan Statistical Areas with the highest probability of price delcines:

You can get the full report here:

http://www.pmi-us.com/media/pdf/products_services/eret/pmi_eret08v1s.pdf