Santa Barbara had been experiencing a gradual increase in lending activity the last few months. Part of that trend came to a halt.
The non purchase loan market dropped significantly. It went from 399 in April to 337 transactions in May. This is a 15% drop in the number of non purchase transactions.
What would have appeared to be affecting this market is that rates have risen and I would expect the number of new credit lines slowed down. The underwriting guidelines continue to make qualifying for a loan difficult.
The residential purchase market held it's own in May, only dropping 4 transactions. This is about a 3% drop in the number of these loans from April to May. This market was certainly impacted by the increased number of sales in Goleta in May.
I'm not expecting rates to come down significantly, but it certanly wouldn't hurt to see that happen a bit.
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