This excerpt taken from the FNM 10-Q filed May 6, 2008.
Outlook for 2008
We expect severe weakness in the housing market to continue in 2008. We expect home prices to decline 7 to 9% on a national basis in 2008, with significant regional differences in the rate of home price decline, including steeper declines in certain areas such as Florida, California, Nevada and Arizona. We believe this housing market weakness will lead to increased delinquencies, defaults and foreclosures on mortgage loans, and slower growth in U.S. residential mortgage debt outstanding in 2008. Based on our market outlook, we currently have the following expectations about our future financial performance.
We provide additional detail on trends that may affect our result of operations, financial condition, liquidity and regulatory capital position in future periods in Consolidated Results of Operations below.