Mortgage rates began heading upward last week as markets continued to digest the positive economic news from the previous week, and reacted to more positive news last week. The ISM Services Index rose sharply last week on the heels of a larger than expected increase in the ISM Manufacturing Index. While manufacturing has lead much of this current recovery, the increase in the Services Index reveals that we may be on the verge of seeing an even larger portion of the economy, services, moving into a sustainable growth situation.
Without the support of the Fed’s program for buying mortgage-backed securities, next week could be one of the more volatile weeks we’ve seen in a while for mortgage rates. Many very important economic reports are due including Retail Sales and Industrial Production. If these two reports come in near expectations, it is very likely that mortgage rates will continue moving upward next week. However, a 0.0% or 0.1% change in the CPI could help temper that upward movement.
Canadians Swooping In To Purchase Real Estate
According to the National Association of Realtors, Canadians buyers led all foreign clients in 2009, with 27,000 Canadians purchasing vacation homes in the US. With the continued strength of the Canadian dollar, experts predict that Canadian buyers will continue to purchase even more US residential property in 2010. The top destinations for Canadian buyers are Florida, California, and Arizona, and many are interested in foreclosures and short sales.