Lending Activity In Santa Barbara

It has been a couple of months since I updated my charts on lending activity in Santa Barbara. Not much in the way of change. Purchase loans are still happening and refinance loans are really slowing down.

I'm trying to figure out what is causing the refinance loans to slow down. I'm coming up with a number of scenarios.

• First, it could certainly be what we would all expect. Property values are down and loan rates just aren't that appealing when you compare them to the rates we got accustomed to in the 5% range.
• Second, maybe banks aren't lending the way they once did. Qualifying for a refinance loan today is certainly more difficult than in the past and this is the banks way of saying we don't want to give you any money.
• Another possibility could be borrowers just aren't feeling the need to refinance. They have figured out pulling money out of their homes might not be a good idea, and or their interest rate is still pretty good.

It's probably a combination of many things some of them probably weren't mentioned. If you have a thought feel free to share it.