NOMINAL First Mortgage Rate Data NOMINAL Second Mortgage Rate Data REAL Gains a

NEW ESTIMATE (1998 Survey of Consumer Finances) Mortgage Weight 2nd Mort Weight S&P 500 Nasdaq 

Nominal interest rate Rate Percent Mortgage Bin Rate Percent 2nd Mort Bin Year Mut Fund Stocks 

Finance Method Min Max Mean 0.0% 0.3% 0.0 0 to 1 0.0% 1.8% 0.0 0 to 1 1999 13% 60% 

NOMINAL New home 0.0% 20.0% 7.9% 1.0% 0.0% 1.0 1 to 2 1.0% 0.0% 1.0 1 to 2 1998 24% 34% 

NOMINAL 2nd mortgage 0.0% 22.0% 10.3% 2.6% 0.1% 2.6 2 to 3 2.5% 1.7% 2.5 2 to 3 1997 21% 12% 

NOMINAL Credit card 0.0% 39.0% 13.5% 3.0% 0.2% 3.0 3 to 4 3.6% 0.7% 3.6 3 to 4 1996 14% 19% 

4.4% 0.3% 4.4 4 to 5 4.0% 0.0% 4.0 4 to 5 1995 28% 36% 

28% TAX 5.5% 0.9% 5.5 5 to 6 5.0% 0.0% 5.0 5 to 6 1994 -7% -9% 

1.56% 1998 INFLATION 6.6% 13.9% 6.6 6 to 7 6.5% 3.7% 6.5 6 to 7 1993 3% 9% 

7.4% 41.3% 7.4 7 to 8 7.5% 8.3% 7.5 7 to 8 1992 4% 6% 

COMPOSITE -- NEW CONSTRUCTION AND REPLACEMENT/RETROFIT 8.3% 25.0% 8.3 8 to 9 8.3% 15.8% 8.3 8 to 9 1991 17% 37% 

Real interest rate 9.3% 8.6% 9.3 9 to 10 9.2% 16.3% 9.2 9 to 10 1990 -5% -16% 

Finance Method Share Min Max Mean 10.1% 5.0% 10.1 10 to 11 10.2% 15.8% 10.2 10 to 11 1989 14% 9% 

REAL New home (after tax) 34% -1.6% 12.8% 4.2% 11.1% 1.3% 11.1 11 to 12 11.3% 3.1% 11.3 11 to 12 1988 4% 7% REAL 2nd mortgage (after tax) 2% -1.6% 14.3% 5.9% 12.1% 1.7% 12.1 12 to 13 12.3% 13.3% 12.3 12 to 13 1987 -14% -19% 

REAL Credit card 21% -1.6% 37.4% 12.0% 13.5% 0.5% 13.5 13 to 14 13.3% 5.2% 13.3 13 to 14 1986 12% 2% REAL Transaction accounts 24% 0.0% 4.0% 2.0% 14.1% 0.3% 14.1 14 to 15 14.1% 7.7% 14.1 14 to 15 1985 14% 13% 

REAL CD (6 month) 4% -2.2% 6.4% 2.4% 15.0% 0.0% 15.0 15 to 16 15.0% 1.9% 15.0 15 to 16 1984 -2% 

REAL Savings Bonds (Treasury) 5% -3.3% 5.6% 1.8% 16.0% 0.3% 16.0 16 to 17 16.0% 0.0% 16.0 16 to 17 1983 10% 

REAL Bonds (Corporate AAA) 1% -1.7% 8.8% 4.5% 17.0% 0.0% 17.0 17 to 18 17.0% 0.0% 17.0 17 to 18 1982 11% 

REAL Stocks (Nasdaq) 5% -19.4% 60.2% 13.3% 18.0% 0.1% 18.0 18 to 19 18.0% 2.0% 18.0 18 to 19 1981 -16% 

REAL Mutual Funds (S&P 500) 4% -40.0% 37.2% 4.5% 19.0% 0.0% 19.0 19 to 20 19.0% 1.0% 19.0 19 to 20 1980 5% 

Total Share 100% Wtd Average 5.60% 20.0% 0.1% 20.0 20 to 21 20.0% 0.0% 20.0 20 to 21 1979 -3% 

21.0% 0.0% 21.0 21 to 22 1978 0% 

7.94% 22.0% 1.6% 22.0 22 to 23 1977 -13% 

NEW CONSTRUCTION ONLY 1976 1% 

Real interest rate 10.30% 1975 8% 

Finance Method Share Min Max Mean 1974 -40% 

REAL New home (after tax) 100% -1.6% 12.8% 4.2% 1973 -22% 

1972 10% 1971 2% 

REPLACEMENT/RETROFIT ONLY NOMINAL Credit Card Interest Rate Data 1970 3% 

Real interest rate CC Weight 1969 -16% 

Finance Method Share Min Max Mean Rate Percent CC Bin 1968 8% 

REAL 2nd mortgage (after tax) 3% -1.6% 14.3% 5.9% 0.0% 6.6% 0.0 0 to 1 1967 8% REAL Credit card 32% -1.6% 37.4% 12.0% 1.0% 0.2% 1.0 1 to 2 1966 -16% REAL Transaction accounts 36% 0.0% 4.0% 2.0% 2.0% 0.0% 2.0 2 to 3 1965 4% REAL CD (6 month) 6% -2.2% 6.4% 2.4% 3.8% 1.2% 3.8 3 to 4 1964 9% REAL Savings Bonds (Treasury) 8% -3.3% 5.6% 1.8% 4.9% 3.2% 4.9 4 to 5 1963 12% REAL Bonds (Corporate AAA) 1% -1.7% 8.8% 4.5% 5.8% 4.4% 5.8 5 to 6 1962 -9% REAL Stocks (Nasdaq) 8% -19.4% 60.2% 13.3% 6.4% 2.2% 6.4 6 to 7 1961 15% REAL Mutual Funds (S&P 500) 7% -40.0% 37.2% 4.5% 7.6% 1.5% 7.6 7 to 8 1960 3% 

Total Share 100% Wtd Average 6.33% 8.4% 1.9% 8.4 8 to 9 1959 7% 

9.5% 5.5% 9.5 9 to 10 1958 30% 

1 3% 10.3% 1.9% 10.3 10 to 11 1957 -14% 2 32% 11.4% 3.3% 11.4 11 to 12 1956 5% 3 36% 12.4% 8.4% 12.4 12 to 13 1955 25% 4 6% 13.3% 5.0% 13.3 13 to 14 1954 37% 5 8% 14.3% 6.1% 14.3 14 to 15 1953 -7% 6 1% 15.3% 6.1% 15.3 15 to 16 1952 8% 7 8% 16.3% 4.3% 16.3 16 to 17 1951 2% 8 7% 17.3% 5.1% 17.3 17 to 18 1950 18% 

18.1% 13.8% 18.1 18 to 19 Average 4% 13% 

Finanace Method Retro 4 19.3% 8.9% 19.3 19 to 20 Minimum -40% -19% 

Real Interest Rate Retro 2.4% 20.1% 1.9% 20.1 20 to 21 Maximum 37% 60% 

21.1% 5.8% 21.1 21 to 2222.2% 1.6% 22.2 22 to 2323.1% 0.5% 23.1 23 to 2424.3% 0.4% 24.3 24 to 2525.0% 0.0% 25.0 25 to 2626.0% 0.0% 26.0 26 to 2727.0% 0.0% 27.0 27 to 2828.0% 0.0% 28.0 28 to 2929.0% 0.0% 29.0 29 to 3030.0% 0.0% 30.0 30 to 3131.0% 0.0% 31.0 31 to 3232.0% 0.0% 32.0 32 to 3333.0% 0.0% 33.0 33 to 3434.0% 0.0% 34.0 34 to 3535.0% 0.0% 35.0 35 to 3636.0% 0.0% 36.0 36 to 3737.0% 0.0% 37.0 37 to 3838.0% 0.0% 38.0 38 to 3939.0% 0.1% 39.0 39 to 40

13.51%