WIll a double dip recession cause housing proices to go even lower? What about mortgage rates?

It really depends on your market. Some of the hardest hit areas are still seeing prices drop. Certain places in CA are seeing prices nudge up. It really depends on the amount of foreclosures in the area. The more foreclosures on the market or about to be on market, suppresses the values. Experts are saying some cities could take 20 years to recover. While they say more desirable areas will take 5-7 years. Who really knows though. Rates have stayed low, and probably will continue same trends.