More housing markets south of the border are overheating, credit bureau Fitch has warned.
IN a report issued Monday, it said that even as US fixed-rate mortgage rates rise to their highest rates since 2014, it is not likely to stem the rise of home prices.
"Home prices have historically moved more in line with unemployment and income growth than with movements in mortgage rates," said Managing Director Grant Bailey. With unemployment hovering at its lowest level since 2000 and GDP growth expected to remain strong through next year, these key indicators bode well for future home price growth nationally.”
Nevada, Oregon and Idaho lead the markets that Fitch says are overvalued (by 15%-19%) and it considers previously sustainable markets like Atlanta, Denver, Utah and Washington (5%-9% overvalued) as “a bit frothy.”
Dallas has seen the most significant overheating in the past year and is now 15-19% overvalued.
