Residential Loan Activity in the North County for January 2008 was what you would have expected.
Santa Maria continued to see declining numbers, while Lompoc's numbers were mixed. The number of refinances in Lompoc was less, while the number of purchase loans increased by a few.
If you compare these numbers to the numbers from about a year ago, the refinance market is off significantly. The purchase market is off, but it isn't quite as drastic.
The refinance market in the north county continues to be affected by a decline in home prices, and a large number of bank owned properties on the market. This coupled with a good interest rate environment makes it an interesting dynamic.
There will continue to be a market for refinancing, but it will be hampered by appraisals coming in lower than expected and borrowers being scrutinized more closely than in the past. I expect the numbers to start to improve, but not by that much.
With respects to home sales and the purchase market, we are in a seasonally slow time of year and those numbers should rise in the coming months, but how much is really going to be interesting, especially when the economic stimulus package the government is putting in place kicks in.
The change in the conforming loan limits will also be something to factor in to what might happen in Santa Maria and Lompoc.
See You In Escrow!
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