Can a falling souk designation affect your mortgage interest rate?

I am at the end of refinancing in Chicago, and enjoy had both loans approved by lenders. My mortgage broker says that Fannie Mae desires to run a AVM at the last hour, and if I am deemed to be within a "declining market" , that will affect the interest rate I get on my loan. (I enjoy a condo , and it was already physically appraised a month ago and came within at about 40 grand more than I bought it for 3 years ago.) I though a seen better days market designation only affects my loan-to-value ratio I am required to enjoy, not the interest rate...
Answers:
You are correct it does affect the loan to value ratio which in turn affects the rate. A loan at 95% of the appraised utility is a higher risk then a loan at 90% so it warrant a higher rate.
it can and does as you now would become a risk of foreclosure to the lender if you are so to speak upside down

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