Industry Updates

NEW RESIDENTIAL CONSTRUCTION IN DECEMBER 2009

Building Permits
653,000

Privately owned housing units were at a seasonally adjusted annual rate of 653,000.

This is 10.9 percent (±2.4%) above the revised November rate of 589,000 and is 15.8 percent (±2.9%) above the December 2008 estimate of 564,000.

Housing Starts
557,000

Privately owned housing starts were at a seasonally adjusted annual rate of 557,000.

This is 4.0 percent (±9.3%) below the revised November estimate of 580,000, but is 0.2 percent (±11.5%) above the December 2008 rate of 556,000.

Source: U.S. Census Bureau News/HUD

HARDI HVACR SALES TRENDS

Region	This Month vs. Same Month Previous Year Percent Change (Median)	12-Month Moving Total Sales Percent Change (Median)	Days Outstanding Sales
Northeast	3.00%	-13.90%	45.46
Mid-Atlantic	7.90%	-12.00%	46.9
Southeast	-6.10%	-14.80%	49.6
Great Lakes	11.70%	-8.40%	44.9
Central	-1.80%	-15.70%	45.68
Southwest	4.90%	-6.30%	48.23
West	10.90%	-10.70%	49.06
Canada	12.50%	-5.20%	46.17
December 2009 Median HARDI Member Sales Volume: $1,736,569

Source: Median Sales, HARDI TRENDS Report, December 2009; HARDI's monthly Trends Report is a voluntary survey of distributor members administered by The Institute for Trends Research.

NATE CORNER

NUMBER OF HARDI TESTS SOLD BY REGION LAST YEAR AND GOALS FOR 2010

Region	2009 Total Tests	2010 Goal Tests	% Increase
Central	1,254	1,500	20%
Great Lakes	896	1,165	30%
Mid-Atlantic	497	750	51%
Northeastern	275	500	82%
Southeastern	1,420	1,700	20%
Southwestern	212	500	136%
Western	1,113	1,335	20%
Grand Total	5,667	7,450	31%

Increase Goals:
2009 Greater than 1,000 tests:	20%
2009 500-1,000 tests:	30%
2009 Less than 500 tests:	Varies

If you want more information about sponsoring NATE testing, contact Kathy Corr at 703/276-7247 or kcorr@natex.org.

HEATING AND COOLING EQUIPMENT SHIPMENT REPORT

	November 2009	November 2008	Year to Date	Change from Same Period Last Year
Central Air Conditioners and Air-Source Heat Pumps	283,360	231,995	564,6559	22.0%
Heat Pumps	100,816	95,506	223,986	5.5%
Gas-Fired Warm Air Furnaces	231,108	200,502	1,940,077	15.0%
Oil-Fired Warm Air Furnaces	7,704	4,979	48,571	55.0%
Residential Electric Water Heaters	290,691	280,019	3,415,924	4.0%
Residential Gas Water Heaters	313,524	260,443	3,403,025	20.0%

Source: November 2009 Heating and Cooling Equipment Shipment, AHRI.

2010 PRIMARY MORTGAGE MARKET SURVEY^® | SUMMARY PAGE WITH ALL RATE TYPES — U.S. AVERAGES

Week	U.S. 30-yr FRM	30-yr fees & points	U.S. 15-yr FRM	15-yr fees & points	U.S. 5/1 ARM	5/1 ARM fees & points	U.S. 5/1 ARM margin	U.S. 1-yr ARM	1-yr ARM fees & points	U.S.1-yr ARM margin	30-yr FRM/1-yr ARM spread
1/7	5.09	0.7	4.50	0.7	4.44	0.6	2.74	4.31	0.6	2.75	0.78
1/14	5.06	0.7	4.45	0.6	4.32	0.6	2.74	4.39	0.5	2.75	0.67
1/21	4.99	0.7	4.40	0.6	4.27	0.6	2.74	4.32	0.6	2.74	0.67
1/28	4.98	0.6	4.39	0.6	4.25	0.6	2.74	4.29	0.5	2.75	0.69
2/4	5.01	0.7	4.40	0.7	4.27	0.6	2.74	4.22	0.5	2.75	0.79

Source: Freddie Mac, February 4, 2010