Though AEI’s National Mortgage Risk Index declined slightly from April, falling to 11.87% in May, the survey also found that the Fair Housing Administration is not compensating for riskiness of high DTI loans, and that the government-sponsored enterprises, Fannie Mae and Freddie Mac, are compensating only to a limited extent.

So where is the worst risk?

First, some context. Think housing markets are unstable now? What about in the last several decades? What happens when all of this history is put together into one chart or list?

Courtesy of Tyler at ZeroHedge, the riskiest housing market of modern times is not where you'd think -- not the sand state housing markets, and not even Southern Cali. Nope, it's in...Connecticut? Here it is, plus the other markets that make up the Top 20 riskiest markets.

When so much wealth is tied up in one asset, the risk -- or stability -- of a local market can mean a lot to a homeowner and Bloomberg has quantified the 'riskiest' (and most stable) home markets in America... not Vegas, not Phoenix, and not LA.

"The real estate rollercoaster ride for U.S. homeowners isn't new," writes Ben Steverman for Bloomberg. "Some markets had even rockier rides in the early 1980s or '90s."

Here are the results when all of these rocky rides are taken into account.

Click the graph below to enlarge.