Category Archives: Homebuilders

Signs of Softness in Housing

The National Association of Home Builders sentiment index for February, reported yesterday, dropped sharply to 46 from 56 in January and an average of 51 for 2013.  A reading above 50 means more builders view the market as favorably than as unfavorable.  Housing permits and starts for January were reported this morning and are also […]

S&P Ratings U.S. Housing And Residential Mortgage Finance: 2014 Outlook

U.S. housing made a strong comeback in 2013. Home prices nationally have risen roughly 12%, which is in line with our original forecast early in the year of 11%. Overall, we expect a 6% increase in the S&P Case-Shiller 20-City Home Price Index (December to December % change) in 2014. While historical annual increases are […]

Fed’s Taper is Here: What Next for Housing

The long awaited tapering by the Fed is (almost) here as the central bank announced it would reduce its monthly bond buying by $10 billion beginning in January.  The shock experienced last May when Fed Chairman Bernanke hinted at tapering didn’t repeat.  Instead, the market rose on the news with the S&P 500 hitting a […]

U.S. RMBS Roundtable: S&P and Market Participants Discuss New Qualified Mortgage Rules

Beginning in early 2014, residential mortgage originators must comply with a new set of rules under the Truth in Lending Act (TILA) that implement sections of the Dodd-Frank Act. Experts are debating these rules’ potential impact on loan originations and the creation of residential mortgage-backed securities (RMBS). Standard & Poor’s Ratings Services recently held a […]

Across the Pond

As the US continues to discuss what to do with Fannie Mae and Freddie Mac and how to reframe housing policy so we don’t have another boom and bust, there are similar debates in England, as explained by Martin Wolf in the Financial Times.  If this sounds a bit like the US story some ten […]

What Next from the Housing Recovery… S&P/Case-Shiller Report due Tuesday August 27th

Recent housing market reports tell conflicting stories and the next S&P/Case-Shiller release on prices will help sort out the mixed signals.  Existing home sales were 5.39 million at annual rates in July, up from June’s revised level of 5.06 for a solid gain. New homes sales told the opposite story with a 13.4% plunge to […]

Conflicting Picture in Housing Data

Data for housing permits and starts and the National Association of Home Builders (NAHB) Sentitment Index offer conflicting stories about housing.  Permits and Starts were up with permits rising 2.7% on the months and starts gaining 5.9% from June.  However, much of the action was in apartment construction, not single family homes and the share […]

A Housing Recovery Is Buttressing U.S. Homebuilders’ Credit Quality

Although the U.S. economic recovery remains tepid and 2012 job growth was lackluster at best, activity in one area—new home sales—was markedly hotter, jumping 20% in 2012 compared with 2011. Contributing to this growth were record home affordability, rising apartment rents, an increase in household formations, and a limited supply of existing homes for sale. […]

U.S. Housing And Residential Mortgage Finance 2013 Outlook: Homebuilders Benefit From Demand For New Homes

Buyers for newer homes returned to the single-family home market in 2012, resulting in better than expected operating results for most of the homebuilders we rate. Sales volumes and average selling price exceeded our initial expectations, and we currently expect that the homebuilders we rate will deliver on average 20% more homes in 2012 compared […]

The U.S. Real Estate Industry: Standard & Poor’s Addresses The Top Investor Questions


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