Unemployment to weigh on housing

Fitch warns of 'severe recesssion'

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The U.S. is entering a "severe recession" driven by contraction in credit and a financial crisis with few historical parallels, making it difficult to forecast its length and severity, analysts at Fitch Ratings say.

The worsening outlook for unemployment means home prices may fall harder and take longer to bottom than previously anticipated, Fitch analysts said.