MILWAUKEE — Mortgage Guaranty Insurance Corp. reported Thursday that its national market trends index fell more than 3% in the second quarter, to 7.22.

The index is at its lowest level since the third quarter of 1996, when it stood at 7.01, according to MGIC, the parent of the largest mortgage insurance company in the country.

MGIC said that the drop in the index reflected the weakened economy but also showed that the housing market remains strong.

Though there are signs of underlying economic deterioration in some markets that could affect their housing activity, the general housing market continues to buoy the economy, Neil Siegel, a senior market analyst at MGIC, said in a release.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.