Recent Price Gains May Not Be Here to Stay

Recent Price Gains May Not Be Here to Stay Fitch: While some might be rejoicing at the recent rising home prices and rising home sales seen across the nation, Fitch Ratings “still views these gains cautiously.” In fact, the agency predicts price gains will slow and perhaps even reverse over the next year.

Fitch expects a price “trough in the middle of 2014” but suggests inflation will keep prices from falling more than 3.5 percent.
“While rising prices and sales volumes suggest a recovery, they are not moving in sync with key economic indicators that would otherwise support a sustainable price level,” Fitch stated in its most recent quarterly report.Fitch chalks it up to pent-up demand. Persistent low interest rates, For Third Week, Mortgage Rates Sink Lower: Read more .....