What We're Hearing

We're hearing scattered reports that some savings and loan institutions are becoming more open to the idea of originating jumbo mortgages (those above the Fannie Mae/Freddie Mac Mac limit) and keeping the loans on their balance sheet. Of course -- they have to keep jumbos on their books because the secondary market for such products is non-existent. Whatever these thrifts are up to, you can bet that large down payments are a key requirement. Meanwhile, don't forget that on Friday the government will release new monthly unemployment figures. Unemployment drives delinquencies (and purchases and refis). Perhaps, the economy isn't as strong as some think. This morning the Chicago Purchasing Managers Index was released. It fell to 46.1 in September rather than rising to a reading of 52 which is what most economists were expecting. The poor showing sent stocks tumbling, to some degree...