Panama City Homes and condos | Real Estate Market Summary

Posted by Jennifer Mackay - Owner on Friday, January 20th, 2012 at 8:09am.

Thanks to Jackie Fowler Mortgage Loan Originator at Regions Mortgage for this update

Increased concerns about Europe helped mortgage rates improve this week, although the impact of the recently passed extension to the payroll tax reduction is beginning to push up mortgage rates for certain loans (discussed below).

The news from Europe was mostly negative this week. Economic growth in Germany was slower than expected. Negotiations on restructuring Greek debt did not progress as planned, increasing the risk of default. S&P is downgrading the debt of several European countries, including France. Finally, the European Central Bank (ECB) provided no relief, as it gave no indication that it would increase the level of aid available to troubled countries. As a result, investors shifted funds to relatively safer investments, including US mortgage-backed securities (MBS), which helped mortgage rates move lower.

The recently passed extension to the temporary payroll tax reduction contained a lightly publicized revenue raising provision to increase the guarantee fees charged on Fannie Mae and Freddie Mac loans. This fee results in higher rates for borrowers, and mortgage rates for loans not expected to close within the next month or so have begun to reflect this coming increase in guarantee fees.

Also Notable:
  • Consumer Sentiment jumped to the highest level since May
  • Retail Sales ex-autos posted its first monthly decline since May 2010
  • The Fed's Beige Book reported that economic activity expanded at a "modest to moderate" pace
  • The European Central Bank (ECB) made no change in rates

The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Wednesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Industrial Production, an important indicator of economic growth, will come out on Wednesday. Housing Starts will be released on Thursday, and Existing Home Sales will come out on Friday. Philly Fed and Empire State will round out the schedule. Mortgage markets will be closed on Monday in observance of MLK Day.

Welcome to our Panama City real estate blog. Feel free to share your thoughts and insights as comments are always welcome, whether you are a consumer, journalist or another real estate professional. Our blog includes local and relevant national real estate information, Condo and Home market statistics, personal and professional insights and information about various neighborhoods, subdivisions and listings. If you would like additonal information on any of our topics, please use the contact form and I will be glad to assist you.


 

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7 Responses to "Panama City Homes and condos | Real Estate Market Summary"

Thomas wrote: The ECB not extending further aid to countries in trouble is no surprise, I don't think they are in a leveraged position to do so. I'm certainly not complaining, improved rates are welcome anytime.

Posted on Tuesday, January 24th, 2012 at 11:43am.

Tim wrote: I think 'modest to moderate' is a pretty good description of what we're seeing. Can't wait to hear the feds use some more exuberant adjectives.

Posted on Tuesday, January 24th, 2012 at 11:51am.

Marc wrote: Nice summary, I look at the CPI more than anything else, ultimately it's consumer's financial health that drives rates.

Posted on Tuesday, January 24th, 2012 at 12:08pm.

Debbie Gartner wrote: I believe that the continued unrest in Europe and downfall of the euro will be a net positive for the US but in a global economy, this is not good news and the burden of outsized debt and unemployment just keep shifting. Thank you for the recap.

Posted on Monday, January 30th, 2012 at 8:53pm.

Sally Brown wrote: Hi Jennifer,

So cool to go to your site because I have a sister (we adopted each other) and her husband live in Panama City, and I'll be there March 9th for a couple of weeks. Perhaps we can have coffee when I'm there. I love Panama City! You have a great site! Sally

Posted on Wednesday, February 8th, 2012 at 8:17pm.

Jennifer Mackay | Panama City Beach Homes for sale wrote: Thanks everyone for your comments.

We've been very busy lately working on the updated site, hoping to release next week.

Posted on Tuesday, March 27th, 2012 at 9:16am.

San Diego Homes wrote: Jennifer,
Always admired your site but I am amazed that you spend that time to give your readers such great detail about the macro economic environment. That is really a wonderful service and congrats on your success.

Posted on Saturday, April 28th, 2012 at 4:43pm.

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