Canada

Mexico

-5% - 25% 25% - 50% 50% - 75% 75% - 100% 100% - 195%

2001 Q2 - 2006 Q2Five-Year Cumulative House Price Growth, Single Family

Canada

Mexico

-10% - 5% 5% - 10% 10% - 15% 15% - 20% 20% - 45%

2005 Q2 - 2006 Q2One-Year House Price Growth, Single Family

SECOND HOME

Share >15%:MontereyLas VegasPalm BeachOrlandoTampa-St. PeteTucsonSan FranciscoHonolulu

Share between 10% and 15%:JacksonvillePhoenixReddingAnaheimMiamiSan AntonioSanta BarbaraSan Diego

Share > 15%:MontereyMiamiAustinPalm BeachSan Antonio

Share between 10% and 15%:HonoluluSan JoseOrlandoTampa-St PeteSan FranciscoAnaheimLas VegasSanta BarbaraPhoenixSan DiegoJacksonvilleReddingTucson

INVESTOR

Sometimes Prices Do Decline Regionally

Sources: OFHEO

-10%

-5%

0%

5%

10%

15%

Q1:1980 Q1:1984 Q1:1988 Q1:1992 Q1:1996 Q1:2000 Q1:2004

YO

Y G

row

th

Home Prices in Los Angeles

Distribution of 4Q Rollover Growth Rates for Top 100 MSAs, based on Fannie Mae TB-RTI HP index (August 2006 data)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Growth rate: negative Growth rate: [0, 5%) Growth rate:[5%, 10%)Growth rate: [10%, 20%) Growth rate: >=20%