The recent sharp rise in mortgage rates and increases in home prices will slow, but not derail the U.S. housing recovery, according to Fitch Ratings in the latest edition of the ‘Chalk Line’. As such, Fitch projects stable ratings for most issuers within the homebuilding sector heading into next year.
Fitch believes that recent government struggles, negative equity and challenging mortgage qualification standards appear to be little more than short-term headwinds restraining the housing recovery and is projecting:
– 2013 single-family housing starts to improve about 17%,
– 2013 New home sales increase approximately 20%
– 2013 Existing home sales grow 8.5%.
– 2013 Total housing expansion by 16.5% to 1.1 million.
– 2014 single-family starts to advance 20% and multi-family volume gains 9%.
– 2014 New home sales should improve 20%, while existing home growth to moderate to 5%.
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