Rising Home Prices Bolster MBS Values: Fitch

Regional home price rebounds have been improving the performance of mortgage-backed securitizations with collateral in these areas, but the uptick in housing values is slowing or ending in some regions.

Phoenix, Miami and Riverside, Calif., are among areas where price increases are “at or near sustainable levels,” according to Fitch Ratings. The 25%-plus growth rate in these areas’ home values since 2011 is likely to level off, its analysts say in a recent report.

There also are other regions like Atlanta and Detroit where recovery from severe declines continues despite respective rises in price since 2011 by 26% and 35%. Home prices will keep getting higher in these areas but the rate at which they increase is likely to slow, according to the ratings agency.