Fitch Ratings is trying to rein in the housing market bulls, saying in its latest report that it believes homes are still overvalued.
The reasons: A shortage of housing and still-low mortgage rates are artificially inflating demand.
Fitch contends that home prices remain overvalued and that price growth is not being driven by fundamentals but by technical factors that could easily change. As more homes move more quickly to final foreclosure, especially in states that require a judge in the process and have seen huge delays over the past few years, supply will expand, possibly dramatically in some regions.
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