Presentation at NAR Annual Conference and Expo Orlando, FL November 7, 2008 Presentation at NAR Annual Conference and Expo Orlando, FL November 7, 2008.

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Presentation at NAR Annual Conference and Expo Orlando, FL November 7, 2008 Presentation at NAR Annual Conference and Expo Orlando, FL November 7, 2008 Lawrence Yun, Ph.D. Chief Economist NATIONAL ASSOCIATION OF REALTORS® Lawrence Yun, Ph.D. Chief Economist NATIONAL ASSOCIATION OF REALTORS® Housing Market Outlook Through Economic Recession

Big Subprime Mess economy

Subprime Loan Origination Source: U.S. Treasury Department, WSJ Market Data Group, Inside Mortgage Finance $ billion

Delinquency Rates Subprime vs. Prime Delinquency Rates Subprime vs. Prime Data: Mortgage Bankers Association

Source: NAR Estimate Subprime Loan Exposure

Source: NAR Estimate Foreclosed Homes

Foreclosure Rate on All Mortgages in U.S. Source: NAR Analysis of MBA data - Today’s foreclosures are double the historic average due to sour performance of subprime loans - Foreclosure rates from all homes would be 1/3 lower because no risks from free & clear homes.

Foreclosure Rates by Loan Type 2007 Q2 Data: MBA %