...Lack of Momentum: Comparisons are challenging through first-half 2014, and so far this year most housing metrics seem to have defied expectations and fallen somewhat from a year ago. Though the severe winter throughout much of North America has restrained some housing activity, nonetheless, there is an absence of underlying consumer momentum this spring, perhaps due to buyer sensitivity to home prices and finance rates and the slowing of job growth at year end. Recovery Supports Ratings, Likely Some Upgrades: Fitch Ratings expects stable ratings for most issuers within the homebuilding sector in 2014, reflecting a continued, moderate, cyclical improvement in overall construction activity during the year. Of course, financial performance will vary among issuers, reflecting customer, geographic and product strengths. However, there is the potential for a few upgrades. Public Builders Continue to Outperform: Generally, the major public builders realized much stronger operating results, year...
