JULY 2016

“With last month's gain, sales are now up 4.5% from May 2015 and are at their highest annual pace since February 2007.”

- Lawrence YunNAR’s Chief Economist

“Now in its seventh year, the US economic recovery shows signsof slowing in the face of a strong dollar, a weakening global economy, and low energy prices. But as household growth continues to gain momentum, the housing sector should be an engine of growth.”

- Joint Center For Housing Studies of Harvard University

“Demand for homes has been especially strong as more Americans find work, wages edge higher and mortgage rates remain historically low. We still have some ground to make up but housing remains a bright spot in the economy.”

- Freddie Mac

Freddie Mac 7/2016

30 Year FixedRate Mortgages

from Freddie Mac

Quarter Fannie Mae

Freddie Mac MBA NAR Average

of All Four

2016 4Q 3.7 4.1 4.1 4.1 4.00

2017 1Q 3.6 4.2 4.2 4.3 4.08

2017 2Q 3.8 4.4 4.4 4.5 4.28

2017 3Q 3.8 4.6 4.7 N/A 4.37

Mortgage Rate Projections

7/2016

Ipsos

Homeownership is…

an achievement to be proud of

a dream come true

MacArthur Foundation

Buying a home is an excellent long-term investment because it is likely to increase in value over time and it is one of the best ways for people to build wealth and assets:

“The bigger question is whether the housing crash diminished the general appeal of homeownership. The available evidence suggests that it has not.”

- Joint Center For Housing Studies of Harvard University

% of Renters Who Prefer to Own Increasing

Federal Reserve Bank of New York

% of Renters Who Plan to Buy Increasing

Federal Reserve Bank of New York

“The more sustainable housing markets should allow for positive feedback loops in local economies, with strengthening job and income gains for residential real estate agents, mortgage bankers and home improvement workers.”

- David Berson, Nationwide's SVP & Chief Economist

Pending Home Salesover the last 18 months

2014

2015

2016

Buyer TrafficBy State

NAR

Seller TrafficBy State

NAR

0.4%

-4.7%

-1.7%

-3.1%

-4.5%

-1.9%

-3.8%

-2.2%

-1.1%-1.5%

-3.6%

-9.6%

June July August Sept Oct Nov Dec Jan Feb Mar Apr May

Last 12 Months

HOUSING SUPPLYYear-Over-Year

June

NAR 7/2016

“The stock of existing homes for sale declined 1.9 percent last year, to 2.1 million units. Supply stood at 4.8 months, making 2015 the fourth consecutive year that inventories held below the 6.0-month level, the conventional measure of a balanced market.”

- Joint Center For Housing Studies of Harvard University

- Bob WaltersQuicken Loans Chief Economist

“Many owners aren’t moving on from their current homes, which is holding back available inventory for both first time and move up buyers.

With values on the rise, this could prove to be an ideal time to sell – especially in the hot markets where owners could get more than they expected.”

- Lawrence YunChief Economist NAR

“The primary driver in the increase in sales is more homeowners realizing the equity they've accumulated in recent years and finally deciding to trade-up or downsize.”

Significant EquityBy State

CoreLogic

Positive Equity ShareBy State

CoreLogic

- Anand NallathambiPresident and CEO of CoreLogic

“The CoreLogic Home Price Index was up 5.5% year over year through the first quarter.If home values rise another 5% uniformly across the U.S., the number of underwater borrowers will fall by another one million during the next year.”

“Buyers looking for the most expensive homes will find slashed prices, more options and less competition. It's a much different story for entry-level buyers, who will be up against rising prices, low inventory and tough competition, with homes selling over asking price in many of the nation's hottest housing markets.”

- Zillow

Trulia

Number of Homes for Sale 2016 versus 2012 by category

Zillow

Year-Over-YearPRICE CHANGES

by category

MacArthur Foundation

Thinking about the housing crisis that started in 2008, when many people and families defaulted on their mortgages and lost their

homes, I think the housing crisis is pretty much over

Fannie Mae

40%54% 59%

HowManyAmericans“Don’tKnow”?

????????????

Ipsos

Percentage who believe a 20% down payment is required to purchase a home

- Jonas MoeEllie Mae Senior VP

“The high median credit scores are due to many millennials believing they won’t qualify with the score they have - and are waiting to apply for a mortgage until they have the score they think they need.”

CoreLogicMarketPulse Report

“Consumers are cautious more than they have been in the past and thus the self-sidelining of cautious/discouraged consumers makes it appear as if credit is tightening. More consumer education such as counseling and financial literacy programs could be as or more successful in raising origination levels than introducing new lending products with lower credit standards.”

The average LTV ratio for those applying for a mortgage loan in the last three months by generation…

CoreLogic

Percentage of loan applications in previous 90-day cycle that have closed

Ellie Mae

Have the market information in visual form and at your fingertips…

Average Days on the Market

NAR

By State

4,300,000

4,400,000

4,500,000

4,600,000

4,700,000

4,800,000

4,900,000

5,000,000

5,100,000

5,200,000

5,300,000

5,400,000

5,500,000

5,600,000

Jan 2014 Jan 2015 Jan 2016

EXISTINGHome Sales

Since January 2014

NAR 7/2016

4000000

4500000

5000000

5500000

Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016

EXISTINGHome Sales

Since January 2012

NAR 7/2016

4.5%3.2%

-1.7%

6.5%

11.6%

U.S. Midwest South Northeast

Y-O-Y by region

EXISTINGHome Sales

NAR 7/2016

West

320340

451

497

542

341359

470

527

577

January February March April May

2015 2016

Total Home Salesin thousands

Freddie Mac

January February March April May June July August September October November December

2015 2016

Existing Home Sales in thousands

Freddie Mac

January February March April May June July August September October November December

2015 2016

New Home Sales in thousands

Freddie Mac

Jun-14 Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan-16 Feb Mar Apr May

New Home Sales Annualizedin thousands

Census

4%

14%

33%

24%

9% 10%

6%

Under $150K $150-$199K $200-$299K $300-$399K $400-$499K $500-$749K Over $750K

% of sales by price range

New Home Sales

Census

3.0

3.23.3

3.8

4.03.9

4.0

3.5 3.5

3.2

2.93.0

2.9

3.3

3.7

4.0

4.2

3.7

Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-16 Feb Mar Apr May

New Homes Selling Fast(median months from completion to sold)

Census

90

95

100

105

110

January 2012 January 2013 January 2014 January 2015 January 2016

100 = Historically Healthy Level

PENDING Home Salessince 2012

NAR 7/2016

90

92

94

96

98

100

102

104

106

108

110

112

114

January 2014 January 2015 January 2016

100 = Historically Healthy Level

NAR 7/2016

PENDING Home Salessince 2014

-0.2%

0.0%

-1.8%

0.6%

-0.1%Northeast South

NAR 7/2016

PENDINGHome Sales

Year-Over-Year By Region

MidwestWestU.S.

Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016

Percentage of Distressed Property

Sales

35%

7%10%

January 2012 - Today

NAR 7/2016

Home Prices

4.7%

-0.1%

7.7%

5.9%4.8%

U.S. Northeast West South Midwest

Y-O-Y by region

EXISTINGHome Prices

NAR 7/2016

-1.6%

8.2%

17.1% 16.5%15.0%

12.0%

$0-100K $100-250K $250-500K $500-750K $750K-1M $1M+% -1.6% 8.2% 17.1% 16.5% 15.0% 12.0%

% Change in Sales from last yearby Price Range

NAR 7/2016

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

June 2012 January 2013 January 2014 Jan 2015 Jan 2016

S&P Case Shiller 7/2016

Year-Over-Year

PRICECHANGES

Case Shiller

13.2%12.9%

12.4%

10.8%

9.3%

8.1%

6.7%

5.6%

4.8%4.5% 4.3% 4.5% 4.6%

5.0% 5.0% 4.9% 4.9% 5.0% 5.0%4.7%

5.4% 5.5% 5.7% 5.7%

Jan 2014

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2015

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2016

Feb Mar Apr

5.5% 5.4%

Year-Over-Year PRICE CHANGES20 City Composite

Case Shiller

S&P Case Shiller 7/2016

5.7%5.4%

Forecasted Year-Over-Year % Change in Price by State

CoreLogic

Quicken Loans

-1.4

-2.33

-2.65

-2 -1.98-1.87 -1.8 -1.75

-1.99-2.17

-1.95 -1.89

Jul Aug Sep Oct Nov Dec Jan-16 Feb Mar April May Jun% -1.4 -2.33 -2.65 -2 -1.98 -1.87 -1.8 -1.75 -1.99 -2.17 -1.95 -1.89

Appraiser Home Value Opinions Compared to Homeowner Estimates

Last 12 Months

HOUSINGINVENTORY

Seller TrafficBy State

NAR

January 2011

January 2012

January 2013

January 2014

January 2015

January 2016

Months Inventory of HOMES FOR SALE

2011 - Today

NAR 7/2016

5.0

4.9

5.1

4.8 4.8

5.1

3.94.0

4.4 4.4

4.7 4.7

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Months Inventory of HOMES FOR SALE

NAR 7/2016

Last 12 Months

3.5

4

4.5

5

5.5

6

Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan-16 Feb Mar Apr May

Months Inventory of HOMES FOR SALE

last 2 years

NAR 7/2016

0.4%

-4.7%

-1.7%

-3.1%

-4.5%

-1.9%

-3.8%

-2.2%

-1.1%-1.5%

-3.6%

-9.6%

June July August Sept Oct Nov Dec Jan Feb Mar Apr May

Last 12 Months

HOUSING SUPPLYYear-Over-Year

June

NAR 7/2016

Jan Feb Mar Apr May JuneJuly Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May% -24% -20. -16. -14%-13% -7.6 -5% -6.2 1.8%0.9%5.0%1.6%7.3%5.3%3.2%6.5% 6% 5.5%5.8%4.5% 6% 5.2% 5% -0.5 -0.5 -0.5 2% -0.9 1.80 0.40 -4.7 -1.7 -3.1 -4.5 -1.9 -3.8 -2.2 -1.1 -1.5 -3.6 -9.6

Year-over-Year Inventory Levels

NAR 7/2016

4.8

4.5

5.0 5.0 5.0

5.5 5.55.6

4.9

5.3

Jan Feb Mar Apr May

2015 2016 Census

New Home Inventory months supply

5.5

5.2 5.2

5.8

5.6

5.4

5.2

5.5 5.55.6

4.9

5.3

Jun Jul Aug Sep Oct Nov Dec Jan-16 Feb Mar Apr May

New Home Inventory months supply

Census

Last 12 Months

BUYERDEMAND

Buyer TrafficBy State

NAR

June July August September October November December January 2016 February March April May

Foot Trafficindicator of future sales

NAR 7/2016

Last 12 Months

January 2015 February March April May June July August September October November December

2015 2016

Foot Traffic

NAR 7/2016

indicator of future sales

Jul 2013 Jan 2014 Jan 2015 Jan 2016

Foot Trafficindicator of future sales

NAR 7/2016

INTERESTRATES

Freddie Mac 7/2016

30 Year FixedRate Mortgages

from Freddie Mac

Quarter Fannie Mae

Freddie Mac MBA NAR Average

of All Four

2016 4Q 3.7 4.1 4.1 4.1 4.0

2017 1Q 3.6 4.2 4.2 4.3 4.08

2017 2Q 3.8 4.4 4.4 4.5 4.28

2017 3Q 3.8 4.6 4.7 N/A 4.37

Mortgage Rate Projections

7/2016

2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4Rate 3.7 3.8 4 3.9 3.7 3.7 3.9 4.1 4.2 4.4 4.6 4.8

Freddie Mac

Mortgage RatesFreddie Mac 30 Year Fixed Rate

- Actual- Projected2015

2016

2017

Mortgage Credit Availability

YES NO MAYBE

Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association

Mortgage Credit Availability

MBA

Historic Data for the MORTGAGE CREDIT AVAILABILITY INDEX (a report from the Mortgage Bankers Association)

MBA

48 48

47

46 46

49 49 50

46

44 44

45

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Average Days To Close A Loan

All Closed Loans as per Ellie Mae

Last 12 Months

727

725

724

723

722

721

722

719

720

722

723

724

Jun Jul Aug Sep Oct Nov Dec Jan-16 Feb March April May

FICO Score Requirements

Last 12 months

All Closed Loans as per Ellie Mae

0.02% 0.5%

8.8%

22.1%24.0%

31.9%

12.8%

500-549 550-599 600-649 650-699 700-749 750-799 800+

FICO Score Distribution

54.9%All Closed Loans as per Ellie Mae

724754

686

707

All Loans Conventional FHA VA

Average FICO Scorefor Closed Purchase Loans

by Loan Type

All Closed Loans as per Ellie Mae

3834

41 40

All Loans Conventional FHA VA

Average Back End DTIfor Closed Purchase Loans by Loan Type

All Closed Loans as per Ellie Mae

Resources

KEEPINGCURRENTMATTERS.COM

Slide Slide Title Link

4 Lawrence Yun Quote http://www.realtor.org/news-releases /2016/06/existing- home-sal es-grow-18-percent-in-may-highest-pace-in-over-nine-years

5,11,19 JCHS Harvard Quote http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files /jchs_2016_state_of_the_nations_housing_lowres.pdf

6 Freddie Mac Quote http://www.freddiemac.com/blog/research_and_analysis/20160623_ahead_in_may.html

7, 75 30-Year Fixed Rate http://www.freddiemac.com/pmms

8, 76 Mortgage Rate Projections

http://www.fanniemae.com/resources /file/research/emma/pdf/Housi ng_Forecast_062016.pdfhttp://www.freddiemac.com/finance/pdf/201606-Outlook-06%2028%2016.pdfhttps://www.mba.org/Documents/R esearch/Mtg%20Fin%20Forecast%20Jun%202016.pdfhttp://www.realtor.org/sites/default/files/r eports/2016/em bargoes/forecast-06-2016-us- economic-outl ook-06-29-2016.pdf

9, 30 Ipsos Survey https://www08.wellsfargomedia.com/assets/pdf/about/pr ess/2016/HomeownershipSurvey06142016.pdf

10,28 Buying A Home is Good Investment, Is Crisis Over? https://www.macfound.org/media/files/E-How_H ousing_M atters_National _Full_Report.pdf

12, 13 New York Fed Survey https://www.newyorkfed.org/newsevents/news/research/2016/an160602

14 David Berson Quote http://www.dsnews.com/news/06-28-2016/housing-market-weathering-ongoing-headwinds

15 Pending Home Sales http://www.realtor.org

16-17, 39, 61,70

Buyer & Seller Traffic, Avg Days on the Market http://www.realtor.org/reports/realtors-confidence-index

18 Housing Inventory http://www.realtor.org

20 Bob Walter Quote, Appraisal Gap http://www.quickenloans.com/press-room/2016/06/14/ow ners-wester n-cities-underestimate-value-appraisers-homes/

21 Lawrence Yun Quote http://www.realtor.org/news-releases /2016/06/existing- home-sal es-grow-18-percent-in-may-highest-pace-in-over-nine-years

22-23, 24 CoreLogic Equity Report http://www.corelogic.com/about-us/researchtrends/homeowner-equity-report.aspx#

25,27 Zillow Quote http://zillow.mediaroom.com/2016-06- 24-Entry-Level-Prices-Continue-to-Soar-while-Top- of-the-Market-Stabilizes

Resources

KEEPINGCURRENTMATTERS.COM

Slide Slide Title Link

26 Number of Homes For Sale http://www.trulia.com/blog/trends/inventory-2q2016/

31 Jonas Moe Quote NAREE50th AnnualRealEstateJournalismConference

32 CoreLogic MarketPulse http://www.corelogic.com/about-us/researchtrends/the-marketpulse-report .aspx#

34 CoreLogic LTV by Generation http://www.corelogic.com/blog/authors/archana-pradhan/2016/06/comparing-mortgage-credit-variables-by-applicant -age.aspx

40-42,52, 54-55 Existing Home Sales Report http://www.realtor.org/

43-45 Freddie Mac Home Sales http://www.freddiemac.com/blog/research_and_analysis/20160623_ahead_in_may.html

46-48,67-68 New Home Sales, Inventory http://www.census.gov/constructi on/nrs/pdf/newressales.pdf

49-51 Pending Home Sales Report http://www.realtor.org/

56-57 Case Shiller Price Index https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/367344_cshomeprice-release-0628.pdf

58 Forecasted Price Changes http://www.corelogic.com/about-us/researchtrends/corelogic-home-price -insights.aspx#

62-66 Housing Inventory http://www.realtor.org

71-73 Foot Traffic http://www.realtor.org

77 Freddie Mac Projections http://www.freddiemac.com/pmms

79-80 Mortgage Credit Availability https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/single-family-research/mortgage-credit-availability-index

35, 81-85 Ellie Mae Report http://www.elliemae.com/origination-insi ght-reports/Ellie_Mae_OIR _MAY2016.pdf

89-90 Ipsos Study Graphics https://www08.wellsfargomedia.com/assets/pdf/about/pr ess/2016/HomeownershipSurvey06142016.pdf

93 NAHB Graphic http://www.nahb.org/en/research/housing-economics/housings-economic-impact/impact-of-home-building-and-remodeling-on-the-u-s--economy.aspx