NEW YORK, NY, (Business Wire)--U.S. home prices will fall an additional 12.5% from 2008's year end values before exhibiting more stability in late 2010, according to Fitch Ratings.
This forecast reflects a reversion to early 2002's prices. Currently, prices are hovering around levels seen in mid 2003.
Fitch's forecast is primarily based on its expectation that home prices will return closer to the long-term historical mean, which has been the pattern of prior home price cycles.
Fitch's revised forecast will be incorporated in all new RMBS analysis, as well as the surveillance of existing Fitch-rated RMBS transactions.
Fitch Ratings, Huxley Somerville, 212-908-0381