Home prices grew at a slower pace in November than in October, spurring predictions of further deceleration heading into 2015. In its November Home Price Index report, property data firm CoreLogic recorded a 0.1 percent month-over-month increase in U.S. home prices for November. The minor gain, which includes data from distressed home sales, follows a half a percent increase originally reported for October.
Compared to last year, home prices in November were up 5 and a half percent compared to 6.1 percent in October. While home prices have now continually risen on a year-over-year basis for 33 straight months, the last year has seen growth fall off to a more normalized pace.
While the onslaught of new mortgage regulations in the last year has created headaches for lenders, Fitch Ratings says it's had a clear positive impact in one area: the residential mortgage-backed securities sector. In its latest look at the RMBS segment, the company says that while the market still has some rebuilding left to do, it has seen substantial improvements lately, owing in large part to improved loan underwriting standards in recent years. Fitch isn't the only firm projecting a bright outlook for the sector. Last month, Moody's predicted a slow increase in private-label RMBS issuance in 2015 and continued strengthening in credit quality.