...A Solid Spring: It was a satisfying spring selling season, although perhaps not as strong as some builders expected. Demographics, pent-up demand, attractive affordability/housing valuations and a steady easing in credit standards should support a more robust 2015. For second-half 2015, the key is sustaining order growth in the face of possible erosion in affordability. 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 additional positive outlooks or 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 and prices during first-quarter 2015. A majority reported double-digit increases in orders (average 17.6%). The unit backlog...
