...Sluggish Trends: Starts and orders were generally sluggish and certainly below expectations in 2014 due to buyer wariness, lack of urgency and credit constraints. But demographics, pent- up demand, attractive affordability/housing valuations, and a steady easing in credit standards should sustain and ultimately accelerate the upturn, noticeably so in 2015. Recovery Supports Ratings: Fitch Ratings expects stable ratings for most issuers within the homebuilding sector during 2015, as the economy grows at a healthy, consistent pace. There is a prospect for some positive rating actions, if the housing recovery performs as expected. Of course, financial performance will vary among issuers, reflecting customer, geographic and product strengths. Public Builders Continue to Outperform: Generally, the major builders reported higher closings, prices and margins, and better profits during third-quarter 2014. A majority reported at least midsingle-digit increases in orders. The unit backlog averaged...
