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colorado mortgage risk is rising as home values spike, report warns

colorado mortgage risk is rising as home values spike, report warns Article News With Simple Text and Web Resource Link. For View Full Content Click on Source Link on Then Bottom Of News.



colorado mortgage risk is rising as home values spike, report warns

click photo to enlargea home for sale on feb. 15, 2017 in boulder. colorado is among 11 states where home values have risen so sharply that new mortgages carry an elevated level of risk, according to a report from fitch ratings.the longer and higher that home prices race ahead of underlying economic fundamentals, the greater the chance that future price gains will be anemic or reverse course. slower price appreciation makes it harder for buyers to build the equity they need to shield themselves during a rough patch."the less home price appreciation, the higher probability of default the mortgagor will have. the higher default probability, the higher credit risk the mortgage-backed secu...