Fitch Ratings estimates that home values have dropped 22% nationally and will fall another 10% before the market stabilizes. Fitch anticipates that home values will fall roughly 30% "peak to trough" when the housing correction is over. The rating agency said it expects that most of the remaining price decline will be absorbed during the next few quarters, with prices exhibiting more stability in 2010. Huxley Somerville, managing director of Fitch's residential MBS group, said, "Should economic conditions become much worse than expected, home prices would decline more than Fitch's projection and price stabilization would be delayed."
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