AFL-CIO Housing Investment Trust
                          Highlights - 1st Quarter 2007

The AFL-CIO Housing Investment Trust (HIT or Trust)  outperformed its benchmark,
the Lehman Brothers  Aggregate Bond Index (Index),  in the first quarter of 2007
by 4 basis  points and 14 basis points (bps) for the one year period ended March
31, on a net basis.  The Trust also  outperformed  the Index for the 3-, 5-, and
10-year return periods ended March 31, 2007.

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                  Performance for periods ended March 31, 2007
             (Returns for periods exceeding one year are annualized)

                                 Quarter   1 Year    3 Year    5 Year    10 Year
                                 -------   ------    ------    ------    -------
HIT Total Net Rate of Return      1.54%     6.73%     3.42%     5.45%     6.64%
Lehman Aggregate Bond Index       1.50%     6.59%     3.31%     5.35%     6.46%

The performance  data quoted  represents past performance and is no guarantee of
future  results.  Investment  results and principal value will fluctuate so that
units in the Trust, when redeemed, may be worth more or less than their original
cost.  The  Trust's  current  performance  may  be  lower  or  higher  than  the
performance  quoted.  Performance  data current to the most recent  month-end is
available from the Trust's website at www.aflcio-hit.com.
- --------------------------------------------------------------------------------

Positive  contributions to the HIT's  performance in the first quarter included:
Its ongoing yield  advantage over the Index;  its underweight on the long end of
the yield curve  (15-30 year) - the 15 and 30 year swap rates rose 4 and 8 basis
points, respectively, while swap rates declined on the other points on the yield
curve; its overweight to agency quality multifamily  mortgage-backed  securities
(MBS) versus A and AA rated credit bonds,  which  underperformed  AAA and agency
credit quality bonds; and, its overweight to shorter-duration single-family MBS,
which  outperformed  the longer  duration  Fixed Rate MBS  sectors of the Lehman
Aggregate Bond Index in the 1st quarter. Negative contributions to the HIT's 1st
quarter performance included: its overweight to spread-based  investments (i.e.,
non-cash,  non-U.S.  Treasury  assets) as swap spreads  widened  significantly -
approximately 4 to 8 bps at benchmark maturities from 2 to 30 years - during the
quarter.  This  could have been a  significant  source of  underperformance  had
corporate bonds, which the HIT is does not invest in, not performed so poorly in
the Index in March.

The Trust  continued to manage the duration of the  portfolio to be  effectively
neutral versus the Benchmark.  To help mitigate the risk of spread widening, the
Trust increased somewhat its allocation to cash and U.S. Treasuries ahead of the
"flight-to  quality"  rally that gained  momentum at the end of  February.  This
allocation was again reduced as spreads  recovered towards the end of March. The
Trust anticipates  maintaining its strategy of interest rate neutrality relative
to its  benchmark,  which  will help to  minimize  interest  rate risk given the
recent  increases in uncertainty  about the likely path of interest rates in the
coming year.  In addition,  if the slowdown in the  residential  housing  market
continues   throughout   2007,  the  Trust  expects  its  ongoing   strategy  of
underweighting the lower-quality  sectors of the  investment-grade  fixed income
market  to  continue  to  serve  its  investors  well.  The  absence  of any HIT
investments in pools of sub-prime  mortgage loans is also expected to contribute
positively.

Investors should consider the Trust's investment objectives,  risks, and charges
and expenses carefully before investing. This and other information is contained
in  the  Trust's  prospectus.  To  obtain  a  prospectus,   call  the  Trust  at
202-331-8055 or visit  www.aflcio-hit.com.  The Lehman  Brothers  Aggregate Bond
Index is an unmanaged  index.  It is not  available for direct  investment;  its
returns  would be lower if they  reflected the expenses  associated  with active
management of an actual portfolio.  This material represents HIT's assessment of
the market environment at a specific point in time and should not be relied upon
as research or investment advice.


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