1. National Association of Home Builders 2006 Fall Construction Forecast Conference House Prices: Boom or Bust? October 25, 2006 David W. Berson Vice President & Chief Economist

2. New Home Sales Down in 2006, 2007, and 2008 Millions of Units Source: Bureau of the Census, Fannie Mae forecast

3. Existing Home Sales Down in 2006, 2007, and 2008 Millions of Units Source: National Association of Realtors, Fannie Mae forecast

4. New Home Inventories Soaring Suggests Weakness in Prices Months Source: Bureau of the Census Thousands Months’ Supply at Current Rate (right axis) Homes for Sale at End of Month (left axis)

5. Home Prices versus Disposable Personal Income Per Capita House Price Index Disposable Personal Income per Capita Source: Bureau of Economic Analysis, Office of Federal Housing Enterprise Oversight, National Association of Realtors rolling two-year annualized growth rate

9. New and Existing Single-Family Median Home Price Year/Year Percent Change Not Seasonally Adjusted New Existing Source: U.S. Census Bureau, National Association of REALTORS ® August 2006: New: -1.29% Existing: -1.70%

10. Home Price Gains Still Unsustainably Strong, Should Slow Further Year-Ago Percent Change Home Price Index Purchase Only Home Price Index Source: OFHEO