Credit Suisse analyst Robert W. Baird predicts that the housing market will continue to recover and that private equity will be able to offer more affordable loans, a big turnaround from the market’s slow start.
Borrowers will need to use more cash to buy a home, Mr. Baird said in a note to clients, citing “recent strong growth” in home prices.
He also said that the rate of new mortgage refinancings in the third quarter was the highest since 2009, after the market peaked.
A housing recovery could be coming, but it could take years.
Mr. Baird, who said he expects the market to remain subdued for the next several years, expects a return to normalcy as homeowners use their home equity to purchase a down payment and a down-payment on a second home.
But the recovery will take years to see.
“If you’re looking at an investor, and you’re willing to pay a premium for an investor to buy into a property, you’re going to get a lot of value for the money you put in,” Mr. Binder said.
Investors also face a lot more restrictions.
The Fitch rating, which is not an average, is based on factors like home sales and mortgage rates.
The rating agency’s latest data showed that the number of new home sales fell 1.2% in the second quarter compared with the first three months of the year.
The number of homes sold fell 2.6% in July compared with a year ago.
Fitch also downgraded the credit rating of some private equity funds in the latest update, noting the fund’s exposure to a range of companies and a lack of a clear understanding of how they are managed.
The private equity fund, which has about $5 billion under management, declined to comment for this article.
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