Nebraska Economic Update and Housing Outlook NIFA’s Housing Innovation Marketplace Omaha, NE – January 27, 2010 January 27, 20101K. Edmiston, FRB KC

The Housing Market January 27, 2010K. Edmiston, FRB KC2

Existing Home Sales (Index Q = 100) January 27, 2010K. Edmiston, FRB KC3 Omaha (annual change %)

Months Supply of Existing Homes January 27, 2010K. Edmiston, FRB KC4 Source: Area Residential Realtors Associations

Existing Home Prices (Index Q = 100) January 27, 2010K. Edmiston, FRB KC5

Value of Residential Construction Contracts (January 2005 = 100) January 27, 2010K. Edmiston, FRB KC6

Delinquencies and Foreclosures January 27, 2010K. Edmiston, FRB KC7

Data Source: Lender Processing Services, Inc. Applied Analytics

Omaha Area Foreclosure Rates 2009 Data Source: RealtyTrac

Future Direction January 14, 2010K. Edmiston, FRB KC10  Delinquencies remain high, and are on the rise  Modification efforts likely delaying more than preventing foreclosures

Status of Mortgage Pool in Nebraska and U.S. Status of Mortgage PoolNebraskaUSA Delinquent 30 days Delinquent 60 days Delinquent 90 days TOTAL PAST DUE Foreclosures Started In Foreclosure Process SERIOUSLY DELINQUENT Source: Mortgage Bankers Association January 14, K. Edmiston, FRB KC

Future Direction January 14, 2010K. Edmiston, FRB KC12  Delinquencies remain high, and are on the rise  Modification efforts likely delaying more than preventing foreclosures  Subprime mortgage resets were generally modest in light of low mortgage rates, and resets are about over  But remaining subprime mortgage holders often are in trouble

Subprime Mortgages in Nebraska and U.S 3 rd Qtr rd Qtr Share of Mortgages Nebraska USA Past Due (%) Nebraska USA Foreclosure Rate (%) Nebraska USA Source: Mortgage Bankers Association January 14, K. Edmiston, FRB KC

Future Direction January 14, 2010K. Edmiston, FRB KC14  Delinquencies remain high, and are on the rise  Modification efforts likely delaying more than preventing foreclosures  Subprime mortgage resets were generally modest in light of low mortgage rates, and resets are about over  But remaining subprime mortgage holders often are in trouble  New wave of resets is coming

Mortgage Resets 15 Source: American Loan Performance, UBS January 14, 2010K. Edmiston, FRB KC

Future Direction January 14, 2010K. Edmiston, FRB KC16  Delinquencies remain high, and are on the rise  Modification efforts likely delaying more than preventing foreclosures  Subprime mortgage resets were generally modest in light of low mortgage rates, and resets are about over  But remaining subprime mortgage holders often are in trouble  New wave of resets is coming  Much will depend on the economy and housing markets (up ahead!)

The Economic Situation January 27, 2010K. Edmiston, FRB KC17

Gross Domestic Product (percent change from previous quarter – annual rate) January 27, 2010K. Edmiston, FRB KC18 Source: U.S. Bureau of Economic Analysis

U.S. Retail Sales ($millions) January 27, 2010K. Edmiston, FRB KC19 Source: U.S. Census Bureau

Industry Employment (Percent change from one year ago) January 27, 2010K. Edmiston, FRB KC20 Source: U.S. Bureau of Labor Statistics

Unemployment Rates January 27, 2010K. Edmiston, FRB KC21 Source: U.S. Bureau of Labor Statistics

Nebraska Initial Claims for Unemployment Insurance (Percent change from one year ago) January 27, 2010K. Edmiston, FRB KC22 Source: U.S. Department of Labor

Kelly D. Edmiston 1 Memorial Drive Kansas City, MO (816) Voice (816) Fax January 27,