The Marketpulse May 2020 the Marketpulse

The MarketPulse May 2020 The MarketPulse

Volume 9, Issue 5 May 2020 Data as of Table of Contents March 2020 (unless otherwise stated) Full Impact from Employment Losses not yet Evident in Single-Family Rents ...... 3

Housing Statistics Interest Rates Fuel Refinance-Driven Market in 2019...... 4 March 2020 Pending Sales Reveal Annual Price Growth Slowed HPI® YOY Chg 4 .5% by 0 .3 Percentage Points in April...... 7 HPI YOY Chg XD 4 .2% NegEq Share 3 .5% U .S . Case-Shiller Index Found Annual Price Growth (Q4 2019) Picked up Pace in February...... 9

In The News...... 11

Charts & Graphs...... 12 10 Largest CBSA – Loan Performance Insights Report February 2020 ...... 12 Overview of Loan Performance...... 12 Home Price Index State-Level Detail — Combined Single Family Including Distressed...... 13 Home Price Index...... 14

CoreLogic HPI® Market Condition Overview...... 15

March 2020...... 15 March 2025...... 15

News Media Contact

Lucy De Oliveira [email protected] 416-873-2727 (office)

2 Full Impact from Employment Losses not yet Evident in Single-Family Rents U .S . Single-Family Rents Up 3% Year Over Year in March

Molly Boesel 1 Boesel fig 1 Principal, Economist, Office of the Chief Economist Molly Boesel holds the title principal,. economistSubhead for CoreLogic copy in the goes Office ofhere the Chief Economist and is responsible for analyzing and forecasting housing and mortgage market trends.

Rents for lower-priced homes increased faster than those of higher-priced homes in March compared with a year earlier.

Phoenix had the highest increase in rent in March Figure 1. National Single-Family Rent Index from a year earlier. Year-Over-Year Percent Change by Price Tier 8% U.S. single-family rents increased 3% year over year in March 2020, the same rate of increase as March 2019, 6% according to the CoreLogic Single-Family Rent Index 4%

(SFRI). The index measures rent changes among single- 2% family rental homes, including condominiums, using a 0% repeat-rent analysis to measure1 the Boesel same rental fig 2 properties over time. Single-family. rentsSubhead were on thecopy rise goes-2% here2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 in early 2020 prior to the COVID-19 outbreak, having -4% increased by an average of 3.1% year over year for the -6% first three months of the year. Impacts from state and SFRI Low Tier High Tier local shutdowns on the rental market will be apparent in Source: CoreLogic Single-Family Rent Index, March 2020 the coming months.

Using the rent index to analyze Figure 2. Single-Family Rent Index Year-Over-Year Percent Change in 20 Markets 8% specific price tiers reveals important 8% differences in rent growth. Figure 1 6% 7% shows that the index’s overall 4% 6% growth in March 2020 was propped 5% 2% up by low-end rentals, defined as 4% 0% properties with rents 75% or less of 3% the median rent of the metro -2% 2% 1 area1 . Rents on low-tier rental -4% 1% 01JAN2005 01JAN2006 01JAN2007 homes increased 3.9% year over 0% -6% year and rents for high-tier homes,©2019 CoreLogic, Inc. All Rights Reserved. 1 defined as properties with rents Miami, FL Dallas, TX Austin, TX Austin, Detroit, MI Chicago, IL Chicago, more than 125% of the metro-area AZ Tucson, Atlanta, GA Atlanta, Seattle, WA Boston, MA Boston, Orlando, FL Orlando, Phoenix, AZ Houston, TX Honolulu, HI St. MO Louis, Charlotte, NC Las Vegas, NV median rent, increased 2.7% year CA San Diego, Los Angeles, CA Angeles, Los Washington, DC Philadelphia, PA over year. Rents for low-tier homes 1-Mar-19 1-Mar-20

Continued on page 11 Source: CoreLogic Single-Family Rent Index, March 2020

1 Metro areas used in this report are Metropolitan Statistical Areas and Metropolitan Divisions where available . The SFRI is computed for 75 metros . 3

Arthur Jobe Senior Professional, Economist, Office of the Chief Economist Arthur Jobe holds the title of senior professional economist for CoreLogic in the Office of the Chief Economist. He is responsible for analyzing mortgage and real estate trends. He began his tenure at CoreLogic with the Advisory Services team, working directly with clients and utilizing various CoreLogic data assets to design and deliver customized solutions. He also supported the CoreLogic Lien & Equity Analytics Radar (CLEAR) product as a developer.

CoreLogic TrueStandings servicing data shows the refinance volume, which is particularly sensitive to average interest rate for a home loan slid from 4.96% in interest rate levels, was impacted most. December 2018 to 3.75% in December 2019.1 Effects of falling interest rates include more homeowners CoreLogic public record data shows the total yearly count refinancing an existing home loan, purchasing a new of refinance, purchase and home equity loans increased home or taking out additional debt with a second lien. by 18% in 2019 to roughly 9.51 million, up from 8.06 million in 2018.4 Refinance loan volume grew by 59%, In the first quarter of 2019, mortgage rates were at an while purchase originations remained relatively flat eight-year high when they began to fall.2 The continued with only 4% growth. downward trend led to a quarterly year-over-year drop in first-lien2 mortgage jobe originations, fig 1 from 1.43 million Refinance Insights loans to 1.28. million.Subhead3 However, copy by the goes middle hereof the According to public records data, first-lien refinance second quarter, homeowners were borrowing at 4.24%, volume grew from roughly 2.36 million loans in 2018 to marking the lowest rate since February 2018, resulting 3.74 million loans in 2019. CoreLogic TrueStandings data in an uptick in originations. Mortgage rates continued to decline throughout the remainder of 2019, and Continued on page 5

Figure 1. Home Loan Origination Counts5 (in thousands)

2018 Home Loans 2019 Home Loans

1.72 1.81 2.36

3.74

4.04 3.90

Home Equity Purchase Refi Home Equity Purchase Refi Source: CoreLogic

Figure 2. Rate-or Term Share of Refis Increase with Decreasing Rates Share of Refi Orig Interest Rate

100% 5.0

80% 4.5

60% 4.0

40% 3.5

20% 3.0

0% 2.5 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19

Cash-Out Rate and Term Int Rate (Wgt Avg)

Source: CoreLogic shows the growth in rate-and-term refinances far typical mortgage payment fell by 6.8% because of a 20% exceeded cash outs starting in the second quarter of decline in mortgage rates. 2019. The cash-out share of refinances peaked during the end of 2018 at 68% but fell to just 39% by the end of Second Lien Originations 2019. The decline in cash-out share was due to a surge Public record data shows home equity loan originations in rate-and-term refinance originations, which was the decreased year over year by 5% in 2019 to 1.72 million. result of decreasing interest rates. Over time, we see the Although still down from 2018, favorable interest rates cash-out refinance share of total refinances generally attracted more homeowners, and originations increased follows changes in home-loan interest rates [Figure 2]. by 27% from the first to the second quarter of 2019. ©2019 CoreLogic, Inc. All Rights Reserved. However, slower home appreciation and high demand 2 Purchase Mortgages for refinances limited the year-over-year growth for CoreLogic public record data shows a 4% year-over-year second liens. increase in first lien purchase mortgages, from 3.9 million loans in 2018 to 4.04 million in 2019. Compared to As more homeowners refinanced to take advantage of refinances, this growth was modest because mortgage decreasing interest rates, the share of home equity and rates are often not the sole reason behind home other junior standalone mortgages declined throughout purchase decisions. However, reduced mortgage rates 2019 after the first quarter (seeFigure 3). can have a positive impact on origination activity by Looking forward improving affordability. The CoreLogic Typical Mortgage Payment Analysis demonstrates how changes in interest When refinanced mortgages drive origination growth, rates can have a greater impact on affordability than that we expect it to slow as rates level out. For instance, of changes in home prices. The Typical Mortgage refinance volume abruptly declined 15% month over Payment blog for December 20196 shows how, despite a month in November 2019 and another 2% in December 4% year-over-year increase in the median sale price, the Continued on page 6

5 2 jobe fig 3 . Subhead copy goes here Interest Rates continued from page 5

Figure 3. Home Equity Loan Originations Decreased While Refinance Surged in 2019 Originations (Ths) Interest Rate

500 5.30 450 5.05 400 4.80 350 4.55 300 4.30 250 4.05 200 3.80 150 3.55 100 3.30 50 3.05 0 2.80 Jul-19 Jul-18 Jan-19 Oct-19 Oct-18 Apr-19

Refinance Home Equity Interest Rate

Source: CoreLogic

despite steady historic low home loan rates7. However, a 1 Average interest rate calculated from total purchase and refinance 8 loan originations found in CoreLogic TrueStandings servicing data, decrease in home loan rates in January 2020 sparked a weighted by dollar amount . jump in refinance loan applications, most of which will 2 December 2018 had a weighted average interest rate of 4.96%, the appear as refinance originations in February. The highest since May of 2010, which was 4.97%. 3 Mortgage prigination counts sourced from CoreLogic public records data . Federal Reserve also slashed interest rates in March 4 Senior purchase and refinance liens and home equity loans only. 2020, and we will see the effects of that decision over Excludes piggybacks and other junior liens. 5 Mortgage origination counts sourced from CoreLogic public records  the next few months. data. Purchase and refinance mortgages exclude piggyback loans. 6 https://www.corelogic.com/blog/2020/3/typical-mortgage- payment-u.s.-homebuyers-committed-to-in-2019-dropped-from- prior-year.aspx ©2019 CoreLogic, Inc. All Rights Reserved. 7 Refinance volume sourced for public decord data. Home-loan rates 3 found in CoreLogic TrueStandings servicing data, weighted by dollar amount . 8 Average FreddieMac Conventional Conforming 30-Year Fixed-Rate Mortgage decreased from 3.72% in December 2019 to 3.62% in January 2020 .

6 Pending Sales Reveal Annual Price Growth Slowed by 0 .3 Percentage Points in April COVID-19 effects on housing market include slowing of home-price growth

Bin He Principal, Economist Bin He is a principal economist with the CoreLogic Decision Analytics & Research Team (DART). Bin leads research and development of the CoreLogic Home Price Index and the CoreLogic Real Estate Analytics Suite. Bin is also responsible for the modeling that powers the CoreLogic RiskModel. Before Bin joined CoreLogic, he was director of Credit Analytics for Radian Guaranty, where he was responsible for the development and implementation of mortgage prepayment and default models.

Dr. Frank Nothaft Executive, Chief Economist, Office of the Chief Economist Frank Nothaft holds the title executive, chief economist for CoreLogic. He leads the Office of the Chief Economist and is responsible for analysis, commentary and forecasting trends in global real estate, insurance and mortgage markets.

Home price indexes (HPI), such as the CoreLogic HPI™ Thus, the effect of the COVID-19 disruptions on home and the CoreLogic Case-Shiller Indexes, are vital tools for sales may not appear in HPIs for another month or two. understanding valuation and risk trends in real-estate markets. The main ingredients in the CoreLogic indexes On the other hand, the home buyer and seller agree to 3 he fig 1are prices on settled transactions, as subsequently a price in their sales contract, which is generally signed recorded by local jurisdictions in publicly available about 30 to 45 days before a sale is settled. This . Subhead copyrecords. goes Since ithere takes time to record transactions, collect information can be a leading indicator of what to expect data, and produce indexes, there is always a lag between over the next couple of months. the availability of the data and the calculation of the HPI. CoreLogic has developed a Pending Price Index using MLS data. The index is built on the price recorded on

Figure 1 Correlation of Monthly Percent Change of CoreLogic HPI the contract date rather than the price on the closing with Pending HPI and its Lags date, and hence by design is a leading indicator of HPIs Highest correlation is with Pending HPI lagged 1 and 2 months that utilize final recorded home price to generate the Correlation Coefficient index. The Pending Price Index is built using a hedonic

Highest Correlation approach, which differs from repeat sales methods used 1 1 for most other HPIs.

0.8 To understand the time series relationship between the contracted price and the settlement price data, we 0.6 estimated correlation coefficients for a 20-city composite 0.4 Pending Price Index to its corresponding 20-city 0.2 composite CoreLogic HPI. The 20-city composite index is the aggregated index for 20 major metropolitan areas.2 0 Figure 1 shows the correlation between the month-over-

1-month 2-month 3-month 4-month 5-month 6-month month percent change of the 20-city composite CoreLogic Concurrent HPI and the month-over-month percent change of Pending HPI: Number of Months Lagged Source: CoreLogic, correlation over January 2006 to February 2020 period . Continued on page 8

1 Stephen Malpezzi, Hedonic Pricing Models: A selective and Applied Review, Housing Economics and Public Policy Chapter 5, 2008. 2 The 20 urban areas are Atlanta, Cambridge (MA), Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, Phoenix, Portland, San Diego, San Francisco, Seattle, Nassau County-Suffolk County (NY), Tampa, and Washington DC. The composite index is the weighted average of indexes in these cities where the weight is the entire housing stock in units . 7

Figure 2. 20-City Composite HPI Annual Change: Actual vs Projection Pending HPI projects annual price growth slows 0.3% in April 12-Month Percent Change

13.5% Actual (CoreLogic HPI) 9.0%

4.5% Projection 0.0%

-4.5%

-9.0%

-13.5%

-18.0% Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Month-Year Source: CoreLogic

different lags of the 20-city composite pending index, during April 2020, which reflects the impact of COVID-19 estimated over the January 2006 to February 2020 period. on the home sales as the April price would partially be driven by sales that were pending in March. Annual price As Figure 1 shows, the CoreLogic HPI has the highest growth had been accelerating in the 20-city CoreLogic correlation with the one-month and two-month lag of the HPI composite for the five months prior to April 2020. The Pending Price Index, which suggests the Pending HPI Pending Price Index projects the annual price growth to leads the CoreLogic HPI by one to two months. Hence, by slow by 0.3 percentage points between March and April. leveraging March MLS data, it is possible for us to take a peek at home price trends in April. The CoreLogic HPI The Pending Price Index uses additional information from report released on May 5 provides indexes through MLS data about what is happening now in the housing ©2019 CoreLogic, Inc. All Rights Reserved. 2 March and has no April values. market that will be reflected in the CoreLogic HPI in the future. By leveraging the information in the Pending Price 3 Figure 2 shows the actual and projected year-over-year Index, housing market participants can stay one step changes for the 20-city composite HPI. The Pending Price ahead and be alerted to what may happen in this rapidly Index projects changes in the actual CoreLogic HPI very changing market.  well. Home price appreciation started to slow down

3 The projection is one-period ahead projection. For instance, the April 2020 HPI is projected by using the March 2020 and February 2020 pending 8 indexes, and the March 2020 HPI is projected by using the February 2020 and January 2020 pending index. U .S . Case-Shiller Index Found Annual Price Growth Picked up Pace in February In February 2020, before COVID-19 pandemic, annual home price growth was 4 .2%

Selma Hepp Executive, Research & Insights and Deputy Chief Economist, Office of the Chief Economist Selma Hepp holds the title executive, research & insights and deputy chief economist for CoreLogic. She is responsible for analyzing, interpreting and forecasting economic trends in real estate, mortgage and insurance.

Home prices continued rising at an accelerated pace in Among the 20 urban areas included in the S&P CoreLogic February, with the largest year-over-year increase since Case-Shiller Indexes, Phoenix continued to take the lead January 2019, and month-to-month increase at its for the ninth consecutive month in February, with a 7.5% fastest pace since last June. Annual increases have been year-over-year increase in home prices. Seattle followed strengthening for six consecutive months. in second place at 6%, with the pace of price growth accelerating compared to last February. Conversely, New Strong home price growth remained a function of low York (1.5%) and Chicago (0.7%) reported the smallest mortgage rates, income growth and shortage of homes 12-month gain of the 20 metros. Las Vegas’ price growth for sale that4 persisted hepp in the fighousing 1 market prior to the (3.5%) slowed sharply from last February, when it topped economic shutdown due to the coronavirus (COVID-19) almost 10%. pandemic.. SinceSubhead home sales copycaptured goes in this andhere next month’s release account for transactions closed prior to Looking forward, COVID-19 is likely to have varying impacts the implementation of shelter-in-place policies, next in housing markets across the country. In metros where month is also likely to show continued strength in home price growth. Continued on page 10

Figure 1. Home Prices Increased at Fastest Pace in Over a Year CoreLogic S&P Case-Shiller Index, Year-Over-Year Change

0% June 2015 June 2016 June 2017 June 2018 June 2019 June April 2015 April 2016 April 2017 April 2018 April 2019 April August 2015 August 2016 August 2017 August 2018 August 2019 August October 2015 October 2016 October 2017 October 2018 October 2019 October February 2015 February 2016 February 2017 February 2018 February 2019 February 2020 February December 2015 December 2016 December 2017 December 2018 December 2019 December Source: S&P CoreLogic Case-Shiller Indexes™, not seasonally adjusted (April 28, 2020 release)

Figure 2. Home Price Growth Slowed Sharply in Las Vegas February 2020 20-City Year-Over-Year Home Price Growth

1% 0% 4 hepp fig 3 June 2015 June 2016 June 2017 June 2018 June 2019 June April 2015 April 2016 April 2017 April 2018 April 2019 April

. Subhead 2015 August copy goes 2016 August here 2017 August 2018 August 2019 August October 2015 October 2016 October 2017 October 2018 October 2019 October February 2015 February 2016 February 2017 February 2018 February 2019 February February 2020 February December 2015 December 2016 December 2017 December 2018 December 2019 December 10-City 20-City

Source: S&P CoreLogic Case-Shiller Indexes, not seasonally adjusted (April 28, 2020 release)

Figure 3. Home Price Growth Slowed Sharply in Las Vegas February 2020 20-City Year-Over-Year Home Price Growth

14%

12%

10%

0% US Dallas Miami Seattle Tampa Detroit Boston Atlanta Denver Chicago Phoenix Portland Charlotte New York Cleveland Las Vegas San Diego San Los Angeles Los Washington Minneapolis San Francisco Feb-20 Feb-19

Source: S&P CoreLogic Case-Shiller Indexes, not seasonally adjusted (April 28, 2020 release)

Continued on page 11

have been outpacing than those of high-tier homes since April 2014, and while the diff erence in these growth rates has narrowed over time, it widened again in March 2020. In The News Rent growth varies signifi cantly across metro areas. Figure 2 shows the year-over-year change in the rental index for 20 large metropolitan areas Bankrate – April 2 in March 2020. Phoenix had the highest year-over-year rent growth this 5 mortgage and real estate March as it has since late 2018, with an increase of 6.8%, followed by trends for the second quarter of Seattle (+6.2%) and Tucson (+5.3%). While none of the 20 metro areas 2020 showed decreases in rent, both Philadelphia and Honolulu recorded “’While the majority of workers who sub-1% growth in March. Philadelphia also had the largest deceleration in are being hit hard by the abrupt shutdown of economic activities are rent growth in March, showing annual rent growth of 3 percentage points generally hourly workers who would lower than in March 2019. Seattle had the largest acceleration in rent not necessarily be in the market to buy a home, the impact has been growth in March, with rents increasing 5 percentage points faster than in spreading to salaried workers as March 2019. Employment gains turned negative in four of the 20 metros well,’ says Selma Hepp, deputy chief tracked in the report in March, a trend that will soon reach the remaining economist at CoreLogic.” metros, likely impacting single-family rental prices.  Barron’s – April 25 Home Buyers Are Looking for Price Cuts. Realtors Say Sellers Aren’t Budging. “While data released over the coming months will provide a clearer picture of coronavirus’s impact on U.S. Case-Shiller Index continued from page 10 home prices, economists say buyers shouldn’t expect widespread dramatic price drops similar to those seen in job losses are higher than average, housing markets may see a larger impact the Great Recession. ‘Buyers have been, a lot of times, referring back from the economic shutdown, particularly if home price growth was already to 2008,’ says Selma Hepp, deputy slowing coming into the pandemic. For example, states with the largest chief economist at CoreLogic. ‘It’s number of unemployment claims and slowing home-price trends include part of the expectations because of the prior cycle.’” some markets in Nevada, Florida and Illinois. Realtor.com – April 14 Homes sold in the lower one-third of the price distribution continued to Mortgage Forbearance Is Not All see relatively stronger appreciation than higher-priced homes, due to low It’s Cracked Up To Be—Here’s the for-sale inventories and competing demand from both traditional buyers Ugly Truth and investors. Increased activity among millennial buyers is also helping “In January, just 0.4% of mortgages were in some stage of foreclosure, drive stronger prices. On a 12-month basis, strongest growth in the lowest according to the most recent data price tier was in Seattle (up 10%), with Atlanta, Boston and Tampa, Florida, released by real estate data company all up 9%. CoreLogic. Meanwhile, only 3.5% of mortgages were delinquent, which means they were at least 30 days late.” With continued shelter-in-place polices and uncertainty around post- COVID-19 economic outcomes, spring home-buying season is likely to Mortgage News Daily – April 21 disappoint, which may have an impact on home prices in the next several February Rent Increases were Largest in Four Years months. However, many promising signs remain, including active millennials “Single-family homes now provide who are benefi ting from some of the lowest mortgage rates in history.  half of all rental units in the U.S. CoreLogic’s Single Family Rental Index (SFRI) recorded an annual gain of 3.3 percent in rents for those homes, the largest annual increase in nearly four years.”

11 Charts & Graphs

10 Largest CBSA – Loan Performance Insights Report February 2020

30 Days or 30 Days or More Serious More Serious Delinquency Delinquency Foreclosure Delinquency Delinquency Foreclosure Rate February Rate February Rate February Rate February Rate February Rate February CBSA 2020 (%) 2020 (%) 2020 (%) 2019 (%) 2019 (%) 2019 (%)

Boston-Cambridge-Newton MA-NH 2.8 0.9 0.3 3.2 1.0 0.3

Chicago-Naperville-Elgin IL-IN-WI 4.0 1.5 0.6 4.4 1.7 0.6

Denver-Aurora-Lakewood CO 1.6 0.4 0.1 1.8 0.4 0.1

Houston-The Woodlands-Sugar Land TX 4.7 1.4 0.4 5.1 1.7 0.3

2.78x5.93;Las Vegas-Henderson-Paradise NV no legend, 3.1 1.2no horizontal 0.5 3.6 axis 1.5 labels; 0.6 7pt

Los Angeles-Long Beach-Anaheim CA 2.2 0.6 0.2 2.6 0.7 0.2 loanMiami-Fort Lauderdale-Westperformance Palm Beach FL 5.1 feb 1.8 2020: 0.8 national 5.6 2.3 overview 0.9 New York-Newark-Jersey City NY-NJ-PA 4.7 2.2 1.1 5.3 2.6 1.2

San Francisco-Oakland-Hayward CA 1.2 0.3 0.1 1.3 0.3 0.1

Washington-Arlington-Alexandria DC-VA-MD-WV 3.1 1.0 0.3 3.7 1.2 0.3

Source: CoreLogic February 2020

Overview of Loan Performance National Delinquency News

4.5 4.0 4.0 3.6 3.5

3.0

2.5 2.0 2.0 1.8 PercentageRate 1.5 1.1 1.0 0.9 1.0 0.8 0.6 0.6 0.4 0.4 0.5 0.3 0.3

0.0 February 2019 30 Days or More 30-59 Days 60-89 Days 90-119 Days 90+ Days 120+ Days In Past Due Past Due Past Due Past Due (not in fcl) Past Due Foreclosure February 2020 Source: CoreLogic February 2020

“If the streak of delinquency declines at the beginning of the year was a bright spot in predicting loan performance in 2020, by April, the highest unemployment rate in decades cast doubt over that optimism. Unemployment insurance claims jumped 1,900% in the last two weeks of March alone. …”

Frank Martell

12 Home Price Index State-Level Detail — Combined Single Family Including Distressed March 2020 Month- Forecasted Month- Forecasted Over-Month Over-Month Year-Over-Year State Percent Change Year-Over-Year Percent Change Percent Change

Alabama 0.2% 4.1% 0.6% 1.3%

Alaska 0.9% 1.5% 0.8% 3.2%

Arizona 1.1% 8.2% 1.0% 0.0%

Arkansas 0.5% 3.2% 0.2% 1.3%

California 0.9% 3.9% 1.2% 5.7%

Colorado 0.9% 4.3% 0.6% −0.3%

Connecticut 0.6% 1.1% 0.9% 2.5%

Delaware 0.7% 3.8% 0.7% −0.8%

District of Columbia 0.6% 3.4% 0.8% 0.1%

Florida 0.4% 4.2% 0.9% −1.9%

Georgia 0.7% 4.8% 0.7% −0.6%

Hawaii 0.9% 3.9% 0.8% 3.8%

Idaho 0.8% 11.7% 0.4% 0.5%

Illinois 1.0% 1.8% 0.5% 1.4%

Indiana 1.3% 5.8% 0.4% 0.4%

Iowa −0.5% 1.8% 0.2% 0.4%

Kansas 1.9% 5.2% 0.5% −0.3%

Kentucky 0.4% 3.8% 0.5% −0.2%

Louisiana 1.1% 2.4% 0.2% −2.1%

Maine 0.9% 4.6% 0.9% 2.8%

Maryland 0.5% 2.9% 0.8% 0.1%

Massachusetts 1.1% 4.0% 0.8% 0.7%

Michigan 0.0% 3.8% 0.5% 0.8%

Minnesota 0.8% 4.3% 0.3% −1.7%

Mississippi 0.3% 3.7% 0.4% −0.9%

Missouri 0.7% 6.1% 0.3% −0.2%

Montana 1.2% 5.1% 0.6% 3.1%

Nebraska 0.4% 4.5% 0.3% 0.0%

Nevada 0.8% 4.8% 0.9% −0.3%

New Hampshire 0.7% 4.6% 0.6% 1.2%

New Jersey 1.3% 4.5% 0.8% 1.1%

New Mexico 0.9% 7.6% 0.5% 0.6%

New York 1.1% 1.6% 0.7% 0.9%

North Carolina 0.6% 5.0% 0.6% −1.3%

North Dakota 1.4% 2.1% 0.3% −0.3%

Ohio 1.0% 5.5% 0.4% −0.3%

Oklahoma 0.7% 3.4% 0.2% −0.4%

Oregon 0.6% 4.6% 0.7% 2.4%

Pennsylvania 1.4% 4.9% 0.8% −0.3%

Rhode Island 1.7% 6.5% 0.9% −0.6%

South Carolina 0.6% 4.2% 0.7% 0.3%

South Dakota 0.4% 7.1% 0.2% −1.8%

Tennessee 0.3% 5.6% 0.6% −0.3%

Texas 0.1% 3.0% 0.0% −2.0%

Utah 0.9% 5.7% 0.5% 0.3%

Vermont −0.4% 3.9% 0.3% 1.7%

Virginia 0.4% 3.7% 0.8% 0.1%

Washington 1.4% 6.4% 0.9% 1.7%

West Virginia 1.4% 7.3% 0.5% −0.8%

Wisconsin 0.0% 4.5% 0.2% 0.3%

Wyoming 0.9% 7.5% 0.6% 1.3%

Source: CoreLogic March 2020

13 3.04x5.67; 7pt type hpi as of mar 2020

Charts & Graphs (continued)

Home Price Index Percentage Change Year Over Year

20%

15%

10%

-5%

-10%

-15%

-20% Including 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Distressed Source: CoreLogic March 2020

“Home prices for March reflect transactions negotiated primarily in the previous two months, prior to the implementation of the shelter-in-place

©2020 CoreLogic, Inc. All Rights Reserved. policies. Rapid decline of purchase activity starting in the middle of March can be seen in other CoreLogic data and is consistent with our HPI forecast of slowing price growth in April. The first quarter GDP results showed that the country entered a recession in March. Unemployment claims have reached record highs and this economic environment will further impact the housing market into the foreseeable future.”

Dr . Frank Nothaft Chief Economist for CoreLogic

14 CoreLogic HPI® Market Condition Overview March 2020

Legend

■ Normal ■ Overvalued ■ Undervalued Source: CoreLogic CoreLogic HPI Single Family Combined Tier, data through March 2020 . CoreLogic HPI Forecasts Single Family Combined Tier, starting April 2020 .

Forecast: CoreLogic HPI® Market Condition Overview March 2025

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15 Variable Definition Total Sales The total number of all home-sale transactions during the month. Total Sales 12-Month sum The total number of all home-sale transactions for the last 12 months. Total Sales YoY Change 0.3% 12-Month sum Percentage increase or decrease in current 12 months of total sales over the prior 12 months of total sales New Home Sales The total number of newly constructed residentail housing units sold during the month. New Home Sales 0.9% Median Price The median price for newly constructed residential housing units during the month. Existing Home Sales The number of previously constucted homes that were sold to an unaffiliated third party. DOES NOT INCLUDE REO AND SHORT SALES. REO Sales Number of bank owned properties that were sold to an unaffiliated third party. REO Sales Share The number of REO Sales in a given month divided by total sales. REO Price Discount The average price of a REO divided by the average price of an existing-home sale. REO Pct The count of loans in REO as a percentage of the overall count of loans for the reporting period. Short Sales The number of short sales. A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. Short Sales Share The number of Short Sales in a given month divided by total sales. Short Sale Price Discount The average price of a Short Sale divided by the average price of an existing-home sale. Short Sale Pct The count of loans in Short Sale as a percentage of the overall count of loans for the month. Distressed Sales Share The percentage of the total sales that were a distressed sale (REO or short sale). Distressed Sales Share 0.4% (sales 12-Month sum) The sum of the REO Sales 12-month sum and the Short Sales 12-month sum divided by the total sales 12-month sum. HPI MoM Percent increase or decrease in HPI single family combined series over a month ago. HPI YoY Percent increase or decrease in HPI single family combined series over a year ago. HPI MoM Excluding Distressed Percent increase or decrease in HPI single family combined excluding distressed series over a month ago. HPI YoY Excluding Distressed Percent increase or decrease in HPI single family combined excluding distressed series over a year ago. HPI Percent Change 0.2% from Peak Percent increase or decrease in HPI single family combined series from the respective peak value in the index. 90 Days + DQ Pct The percentage of the overall loan count that are 90 or more days delinquent as of the reporting period. This percentage includes loans that are in foreclosure or REO. Stock of 90+ Delinquencies YoY Chg Percent change year-over-year of the number of 90+ day delinquencies in the current month. Foreclosure Pct The percentage of the overall loan count that is currently in foreclosure as of the reporting period. Percent Change Stock of Foreclosures Percent increase or decrease in the number of foreclosures from the respective peak number of from Peak foreclosures. Pre-foreclosure Filings The number of mortgages where the lender has initiated foreclosure proceedings and it has been made known through public notice (NOD). Completed Foreclosures A completed foreclosure occurs when a property is auctioned and results in either the purchase of the home at auction or the property is taken by the lender as part of their Real Estate Owned (REO) inventory. Negative Equity Share The percentage of mortgages in negative equity. The denominator for the negative equity percent is based on the number of mortgages from the public record. Negative Equity The number of mortgages in negative equity. Negative equity is calculated as the difference between the current value of the property and the origination value of the mortgage. If the mortgage debt is greater than the current value, the property is considered to be in a negative equity position. We estimate current UPB value, not origination value. Months' Supply of Distressed Homes 0.4% (total sales 12-Month avg) The months it would take to sell off all homes currently in distress of 90 days delinquency or greater based on the current sales pace. Price/Income Ratio CoreLogic HPI™ divided by Nominal Personal Income provided by the Bureau of Economic Analysis and indexed to January 1976. Conforming Prime Serious The rate serious delinquency mortgages which are within the legislated purchase limits of Fannie Mae Delinquency Rate and Freddie Mac. The conforming limits are legislated by the Federal Housing Finance Agency (FHFA). Jumbo Prime Serious The rate serious delinquency mortgages which are larger than the legislated purchase limits of Fannie Delinquency Rate Mae and Freddie Mac. The conforming limits are legislated by the Federal Housing Finance Agency (FHFA).

16 Variable Definition Source: CoreLogic The data provided is for use only by the primary recipient or the primary recipient's publication More Insights Total Sales The total number of all home-sale transactions during the month. or broadcast . This data may not be re-sold, republished or licensed to any other source, Total Sales 12-Month sum The total number of all home-sale transactions for the last 12 months. including publications and sources owned by the primary recipient's parent company without The CoreLogic Insights Blog Total Sales YoY Change 0.3% prior written permission from CoreLogic . Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company . (corelogic.com/blog) provides an 12-Month sum Percentage increase or decrease in current 12 months of total sales over the prior 12 months of total sales For use with broadcast or web content, the citation must directly accompany first reference expanded perspective on housing of the data . If the data is illustrated with maps, charts, graphs or other visual elements, the New Home Sales The total number of newly constructed residentail housing units sold during the month. CoreLogic logo must be included on screen or website . For questions, analysis or interpretation economies and property markets, New Home Sales 0.9% of the data, contact CoreLogic at newsmedia@corelogic .com . Data provided may not be including policy, trends, regulation Median Price The median price for newly constructed residential housing units during the month. modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner . This data is compiled from public records, contributory databases and proprietary and compliance. Please visit the Existing Home Sales The number of previously constucted homes that were sold to an unaffiliated third party. DOES NOT analytics, and its accuracy is dependent upon these sources . INCLUDE REO AND SHORT SALES. blog for timely analysis, thought- REO Sales Number of bank owned properties that were sold to an unaffiliated third party. provoking data visualizations and REO Sales Share The number of REO Sales in a given month divided by total sales. For more information please call 866.774.3282 unique commentary from our team REO Price Discount The average price of a REO divided by the average price of an existing-home sale. The MarketPulse is a newsletter published by CoreLogic, Inc . ("CoreLogic") . This information is made available for informational purposes only and is not intended to provide specific REO Pct The count of loans in REO as a percentage of the overall count of loans for the reporting period. in the Office of the Chief Economist. commercial, financial or investment advice. CoreLogic disclaims all express or implied Short Sales The number of short sales. A short sale is a sale of real estate in which the sale proceeds fall short of representations, warranties and guaranties, including implied warranties of merchantability, the balance owed on the property's loan. CoreLogic fitness for a particular purpose, title, or non-infringement. Neither CoreLogic nor its licensors Short Sales Share The number of Short Sales in a given month divided by total sales. make any representations, warranties or guaranties as to the quality, reliability, suitability, Short Sale Price Discount The average price of a Short Sale divided by the average price of an existing-home sale. truth, accuracy, timeliness or completeness of the information contained in this newsletter . CoreLogic shall not be held responsible for any errors, inaccuracies, omissions or losses Short Sale Pct The count of loans in Short Sale as a percentage of the overall count of loans for the month. CoreLogic Econ resulting directly or indirectly from your reliance on the information contained in this Distressed Sales Share The percentage of the total sales that were a distressed sale (REO or short sale). newsletter . Distressed Sales Share 0.4% This newsletter contains links to third-party websites that are not controlled by CoreLogic . (sales 12-Month sum) The sum of the REO Sales 12-month sum and the Short Sales 12-month sum divided by the total sales CoreLogic is not responsible for the content of third-party websites . The use of a third-party 12-month sum. website and its content is governed by the terms and conditions set forth on the third-party’s site HPI MoM Percent increase or decrease in HPI single family combined series over a month ago. and CoreLogic assumes no responsibility for your use of or activities on the site . HPI YoY Percent increase or decrease in HPI single family combined series over a year ago. HPI MoM Excluding Distressed Percent increase or decrease in HPI single family combined excluding distressed series over a month ago. HPI YoY Excluding Distressed Percent increase or decrease in HPI single family combined excluding distressed series over a year ago. HPI Percent Change 0.2% from Peak Percent increase or decrease in HPI single family combined series from the respective peak value in the index. 90 Days + DQ Pct The percentage of the overall loan count that are 90 or more days delinquent as of the reporting period. This percentage includes loans that are in foreclosure or REO. Stock of 90+ Delinquencies YoY Chg Percent change year-over-year of the number of 90+ day delinquencies in the current month. Foreclosure Pct The percentage of the overall loan count that is currently in foreclosure as of the reporting period. Percent Change Stock of Foreclosures Percent increase or decrease in the number of foreclosures from the respective peak number of from Peak foreclosures. Pre-foreclosure Filings The number of mortgages where the lender has initiated foreclosure proceedings and it has been made known through public notice (NOD). Completed Foreclosures A completed foreclosure occurs when a property is auctioned and results in either the purchase of the home at auction or the property is taken by the lender as part of their Real Estate Owned (REO) inventory. Negative Equity Share The percentage of mortgages in negative equity. The denominator for the negative equity percent is based on the number of mortgages from the public record. Negative Equity The number of mortgages in negative equity. Negative equity is calculated as the difference between the current value of the property and the origination value of the mortgage. If the mortgage debt is greater than the current value, the property is considered to be in a negative equity position. We estimate current UPB value, not origination value. Months' Supply of Distressed Homes 0.4% (total sales 12-Month avg) The months it would take to sell off all homes currently in distress of 90 days delinquency or greater based on the current sales pace. Price/Income Ratio CoreLogic HPI™ divided by Nominal Personal Income provided by the Bureau of Economic Analysis and indexed to January 1976. Conforming Prime Serious The rate serious delinquency mortgages which are within the legislated purchase limits of Fannie Mae Delinquency Rate and Freddie Mac. The conforming limits are legislated by the Federal Housing Finance Agency (FHFA). Jumbo Prime Serious The rate serious delinquency mortgages which are larger than the legislated purchase limits of Fannie Delinquency Rate Mae and Freddie Mac. The conforming limits are legislated by the Federal Housing Finance Agency (FHFA).

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