With turmoil in the financial sector and mortgages in crisis, until recently, banks have been unwilling and perhaps even afraid to lend. However, since January of this year ['09] lenders have restarted the economic train to recovery by lending first to those borrowers most likely to repay. Customers having higher credit ratings and greater equity have led homeowners looking to capitalize on lower interest rates back into the refinance market here in Southern California. The expected "wave" of mortgage-holders whose option ARM's are set to adjust combined with government pressure to lend bailout capital will continue the move toward a resurgence of the mortgage industry. As for the long term outlook, there will continue to be periods and instances of difficulty as appraised values adjust and short term players take the hardest hits.
What does this mean for nationwide markets? Perhaps since California was the first to see the hit, it will also be the first to see a recovery. This conclusion is evidenced by an increasing number of lenders starting their machines from zero and once again beginning to lend here in the southland. As a Southern California small business owner who was in desperate need of a restart to my own mortgage related business, I can tell you I am grateful to see work happening and believe that better times are not far away.
"A Quick Note"