It just keeps getting "better" in subprime land
You can read more here, if you like. Suffice it to say this is a major, major problem brewing behind the scenes. I followed the mortgage market back in 1998 at Bankrate.com. That's when the Long-Term Capital Management debacle caused the secondary market for mortgages to seize up. Subprime lenders couldn't sell off their loans (especially the 125% LTV seconds that were that period's "hot" mortgage), they didn't have enough cash on hand to survive, and many went belly up.
Even without a LTCM-magnitude debacle, this nascent credit tightening is definitely something to keep an eye on. The housing bubble is already popping ... through in tighter lending requirements resulting from a subprime industry mess and you've got a recipe for even slower sales. Food for thought.