A new report from Fitch Ratings says it’s likely the slowdown in the U.S. housing market will persist through 2008 and continue its disruption of the home construction industry.

In a press release, Fitch said, “Not surprisingly, the highly visible problems in the housing financial system are contributing to a wait and see attitude among prospective home buyers and reducing builder confidence in the single-family housing market. The National Association of Home Builders’ (NAHB) Housing Market Index declined two points to 22 in August, its lowest level since January 1991.”
Fitch believes the builders’ problems are directly related to tighter mortgage lending standards and fluctuating mortgage markets.
In its latest report, Fitch concluded “the highly visible problems in the housing financial system are contributing to a wait and see attitude among prospective home buyers and reducing builder confidence in the single-family housing market.”