The risk of continued price declines shrunk in most metropolitan areas studied by the PMI Mortgage Insurance Co. — the principal operating subsidiary of The PMI Group.

The report finds that 93%, or 356, of 384 metropolitan statistical areas (MSAs) showed declining risk scores in Q409 compared with the previous quarter, while only one rose and the rest remained unchanged.

“This is a significant change in the outlook for lower house prices, as the past couple of quarters showed a m...