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Appendix E: Relevant News Articles (cont.) Copyright 2006 Star Tribune All Rights Reserved Star Tribune (Minneapolis, MN) May 5, 2006 Friday Metro Edition SECTION: BUSINESS; Pg. 2D LENGTH: 392 words HEADLINE: Home building stays level with 2005; The number of permits issued to metro builders fell 7 percent for April but is off just 0.5 percent year-to- date. BYLINE: Jim Buchta, Staff Writer BODY: Residential construction activity in the Twin Cities metro area remained flat last month, according to data released Thursday by the Builders Association of the Twin Cities. In April, home builders were issued 670 permits to build 1,177 units. That's almost 7 percent fewer permits and 3 percent more units than in April 2005. "The market pace thus far seems to be similar to last year," said Curt Swanson, 2006 president of the Builders Association of the Twin Cities and president of Swanson Homes. So far this year, permit activity is running 0.5 percent behind last year at this time. Planned units are down 1.5 percent for the same period. After several years of record home sales that started in 2000, builders have been anticipating a slowdown. During the past year, the market has slowed and mortgage interest rates have risen. While interest rates still are near historic lows, they have increased to their highest level in four years. During the week ended April 27, the average fixed-rate mortgage was 6.58 percent, according to Freddie Mac, which provides funding to the secondary mortgage market. Last year at this time, the same mortgage was at 5.78 percent. Association-maintained housing continues to be popular, particularly in urban neighborhoods. Last month, condominiums and townhouses represented 49.9 percent of the total number of planned units. Year-to- date attached housing represented 48 percent of all new units. Minneapolis, a hot spot for condo developers, posted the highest number of planned units in the region. During April, builders planned to build 155 units in the city, for a total of 340 so far this year. Jim Buchta - 612-673-7376