My 96 Legacy is sqeaking when going forward at low speeds. Sounds like a noise the brakes make when they are wearing out, but the brakes aren't on. Please tell me it's not my axles dying (I need new boots).

Maybe the wear indicator on the brake pads? Or is that what you have ruled out?

 

Axles don't squeak, so it could be suspension related.

I'm sure you realize that even though you're not stepping on the pedal, the brake pads are still riding against the rotors and can squeak from the wear indicators or the pads themselves.

 

Take a closer look.

Its the brake pads not entirely releasing from the rotor, due to dust collected around the pads and slider clips. Pull the wheel, remove the caliper, pads and pad carrier. Clean everything, lube slider clips, apply anti squeal lubricant to the backs of the pads and reinstall. Assuming no parts are worn, and your caliper isn't seized, you should have no more squeal. Did this yesterday to my wife's Lexus, and all is again well and squeakless.