OREANDA-NEWS. Steady order growth and strong backlogs should support healthy financials for the U.S. homebuilding sector during the remainder of 2015 and headed into next year, according to Fitch Ratings in the latest edition of the 'Chalk Line'. Potential impediments include the timing and size of Fed interest rate moves and the availability of an adequate labor supply.

'Factors like a sound economy, pent-up demand, attractive affordability and a moderate, steady easing of credit standards should help support the housing upturn for at least the next six-to-12 months,' said Managing Director and lead homebuilding analyst Robert Curran.

In 2015, single-family starts should expand about 11.5% and multifamily volume should gain about 11%. Fitch expects new home sales to improve about 20%, while existing home sales stand to rise approximately 7%. The upcycle for housing should continue in 2016. Fitch projects single-family starts to improve 14% as multifamily volume to reach 6%. Fitch also expects new and existing home sales to increase 18% and 4%, respectively.

Fitch expects stable ratings for most issuers within the homebuilding sector during the balance of 2015 and in 2016, reflecting a continued, moderate cyclical improvement in overall construction activity. However, there is potential for a few positive outlooks and/or rating upgrades.

Fitch will provide a brief recap of the second-quarter 2015 (2Q'15) and comment on recent financial/operating results and expectations for the 3Q'15 and calendar years 2015 and 2016 during a teleconference to be held Monday, Nov. 2, at 2:00 p.m. ET (separate press release to follow).

Fitch's latest 'U.S. Homebuilding: The Chalk Line - Quarterly Update: Fall 2015' includes the following key updates and new features:

--Homebuilders' quarterly growth trends and margin statistics for 2Q'15, excluding the impact of non-recurring, non-cash real estate charges, are provided.
--Liquidity analyses are updated and historical liquidity profiles are presented for perspective.
--Recovery ratings are detailed for five single B or lower rated homebuilding credits.
--Fitch is providing a first look at homebuilder 3Q'15 financial and operating results.
--Past and present oil prices and their effect on the Houston and Texas economies are discussed.
--The problem of builders pressured by availability and cost of labor is examined.
--Builders' positions in top 50 metro housing markets are updated for 2014.
--Housing inflation vs. general inflation and income growth is discussed.
--Historical trends in mortgage rates vis-?-vis new home sales and housing starts is highlighted.
--The government confirms the severe contraction of the homebuilding industry during the economic recession.
--The meaningful financial squeeze on renters is referenced.
--Freddie Mac's Multi-Indicator Market Index is profiled.
--Commentary on the August 2015 MBA white paper on Housing Demand and Demographics is provided.

--There are also updated comments on the Fed and interest rates, foreclosure statistics, metropolitan home prices, housing related regulations, owning versus renting, cash sales, national home pricing trends, jumbo loans, lumber and other materials prices, incremental sources of demand, underwriting standards, underwater homes, demographics, Fannie Mae/Freddie Mac, the FHFA, FHA, credit scoring, regulator actions, housing legislation, future household growth, trends in homeownership rates, new policies relating to mortgage buybacks, and demographics.

--Fitch's economic and construction forecasts for 2015 and 2016 have been updated.

The report is available at 'www.fitchratings.com'.