FRE Outlook: Mortgage Rates Headed to 7%, Home Prices to Fall Into 2010

Freddie Mac has issued its August economic and housing market outlook, and it ain’t pretty.

GDP
Q3: 1.7%
Q4: 1%
2008: 1.4%
2009: 2.5%
2010: 3.5%

CPI
Q3: 2.5%
Q4: 2.5%
2008: 3.6%
2009: 2.5%
2010: 2.5%

Unemployment
Q3: 5.8%
Q4: 6%
2008: 5.5%
2009: 6.1%
2010: 5.9%

30yr Mortgage Rates
Q3: 6.5%
Q4: 6.6%
2008: 6.3%
2009: 6.9%
2010: 6.9%

Housing Starts
2008: 970k
2009: 1.07mln
2010: 1.17mln

Home Prices
2008: -4.7%
2009: -4.5%
2010: -1.1%

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