What We're Hearing

The warehouse lending picture has improved dramatically over the past 12 months, although there is nothing "easy" about obtaining a new line. For the banks that make credit available to nonbanks the profit margins are still very handsome, or so I'm told. But has warehouse credit to jumbo providers improved during this time? I'm told the answer to that question is no, or very little. If you have any insight on the jumbo warehouse picture, drop me an email. Meanwhile, the new home sales figures are out and April looked like a banner month. Of course, (as we all know) the 14.8% jump in activity is being given to the $8,000 tax credit (and another 'move up' credit) expiring and sales being artifically added to April. My guess is that May and June will be strong months too. But what if the employment picture really does improve and more workers decide to take the plunge because rates are low and homes cheaper than they've been for 10 years? It's something to think about…