...Fall housing activity slowed, but remained stronger than a year ago. Demographics, pent-up demand, attractive affordability and housing valuations combined with a steady, albeit modest, easing in credit standards should support housing demand in 2016. Challenges remain, including rising mortgage rates following the Fed's recent upping of short term interest rates. Recovery Supports Ratings: Fitch Ratings expects stable ratings for most issuers within the homebuilding sector during 2016, as the economy grows at a relatively healthy and consistent pace. There is some potential for 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 third-quarter 2015. A majority (seven) reported double-digit increases in orders (average 11.0%)....
