Housing Forecast: June 2015

14.1 14.2 14.3 14.4 15.1 15.2 15.3 15.4 16.1 16.2 16.3 16.4 2014 2015 2016

Housing Starts and Sales (SAAR, Thous. Units)

Housing Starts 934 984 1,029 1,055 975 1,055 1,170 1,225 1,245 1,315 1,350 1,365 1,003 1,106 1,319

Single-Family (1 Unit) 610 624 654 700 645 705 780 830 850 920 950 965 648 740 921

Percent Change: Year-over-Year 4.9% 14.2% 24.5%

Multifamily (2+ Units) 324 360 375 356 330 350 390 395 395 395 400 400 355 366 398

New Single-Family Home Sales 424 425 439 472 514 511 534 559 574 619 641 652 437 530 621

Percent Change: Year-over-Year 1.9% 21.2% 17.3%

Total Existing Home Sales (Single-Family, Condos and Co-Ops) 4,677 4,887 5,057 5,060 4,967 5,150 5,167 5,180 5,227 5,258 5,267 5,322 4,940 5,116 5,269

Percent Change: Year-over-Year -2.9% 3.6% 3.0%

Total Home Sales (New + Existing) 5,101 5,312 5,496 5,532 5,481 5,661 5,700 5,739 5,801 5,877 5,908 5,973 5,377 5,645 5,890

Percent Change: Year-over-Year -2.6% 5.0% 4.3%

Home Prices (NSA, Thous. $)

Median New 274 282 278 301 290 291 287 314 303 304 300 327 283 296 308

Median Total Existing 191 212 216 208 203 219 224 216 213 228 233 225 208 216 225

FHFA Purchase-Only Index (Percent Change: Quarterly YoY, Annual Q4/Q4) 6.8% 5.6% 4.7% 5.0% 5.0% 3.8% 4.0% 4.6% 4.5% 4.4% 4.4% 4.2% 5.0% 4.6% 4.2%

Mortgage Rates (Percent)

30-Year Fixed Rate Mortgage 4.4 4.2 4.1 4.0 3.7 3.8 3.9 4.0 4.0 4.1 4.2 4.2 4.2 3.8 4.1

5-Year Adjustable Rate Mortgage 3.1 3.0 3.0 3.0 2.9 2.9 3.1 3.2 3.3 3.4 3.5 3.6 3.0 3.0 3.4

1-Year Adjustable Rate Mortgage 2.5 2.4 2.4 2.4 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 2.4 2.5 2.9

Single-Family Mortgage Originations (NSA, Bil. $, 1-4 Units)

Mortgage Originations 240 312 336 296 322 442 365 331 244 315 318 302 1,184 1,461 1,179

Purchase 123 190 194 169 136 227 209 188 143 222 226 207 676 760 799

Refinance 116 122 142 127 186 215 156 143 101 93 92 95 508 701 381

Refinance Share (%) 49% 39% 42% 43% 58% 49% 43% 43% 41% 29% 29% 31% 43% 48% 32%

June 10, 2015

Note: Interest rate forecasts are based on rates from May 29, 2015.

Note: All mortgage originations data are Fannie Mae estimates as there is no universal source for market-wide originations data.

Note: Unshaded areas denote actuals. Shaded areas denote forecasts.

Sources: Actuals: Census Bureau, National Association of REALTORS®, Federal Housing Finance Agency, Freddie Mac, Federal Reserve Board. Forecasts: Fannie Mae Economic & Strategic Research Group

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economic & Strategic Research (ESR) group included in these materials should not be construed as indicating

Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend

on many factors. Although the ESR group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided

in these materials is accurate, current or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results.

The analyses, opinions, estimates, forecasts, and other views published by the ESR group represent the views of that group as of the date indicated and do not necessarily represent the views

of Fannie Mae or its management.

--------------- 2014 --------------- --------------- 2015 --------------- --------------- 2016 ---------------