MBA sees bounce in '09 existing-home sales

New-home sales to be in slump until 2010

The U.S. appears to be in a recession that could drive unemployment up to 7.7 percent by the end of next year, but keep interest rates on 30-year fixed-rate mortgages around 6 percent, the Mortgage Bankers Association forecasts.

The bottom line for housing is that while existing-home sales are projected to rebound slightly in 2009, residential investment will continue to decline in the first half of next year and new-home sales won’t bounce back until 2010, said MBA Chief Economist Jay Brinkmann.