With the Home buying season in spring 2024 falls short of expectationsListed title insurers reported a mediocre second quarter for their business.

In its August 15 reports affirming First American and Stewart’s ratings, Fitch said: “The title insurance industry has recently reported a decline in operating results compared to the very strong performance during the pandemic years. Margin compression was caused by higher interest rates and home affordability challenges, which has limited origination activity.“

The business is affected by the broader macroeconomic trends In its report on Fidelity National Financial, Fitch noted that the companies continued to put pressure on revenues and affirmed its rating.

“Increased mortgage interest rates and increasing affordability concerns continue to inhibit both refinancing and the issuance of new purchase contracts, a trend that is expected to continue in the near future,” the FNF comments.

But in the Stewart and First American reports, analysts expressed the same view: “Performance remains within rating sensitivities and should improve with a return to stronger purchase and refinancing markets.”

What the Competitive threats facing the industryespecially from the Federal GovernmentFitch said the various initiatives are not expected to have an impact on the ratings of the three companies.

Here are the second quarter results for the publicly traded title insurers: