Mortgage rates are expected to dip into the 5% range, benefiting buyers and refinancers. The Federal Reserve will cut short-term rates three times, lowering the prime rate to 6%. A 50-year interest-only mortgage may debut, but portable mortgages are unlikely. Mortgage volume could rise 20%, while unemployment may increase to 4.9%. Home prices in Southern California are predicted to remain flat, with listings and sales rising due to lower rates and higher unemployment.