In the last week the 10 year treasury rate yield has moved from just under 2% to 2.23%. This strong move higher is a predictor of where mortgage interest rates will be in the next few weeks. It is important to remember that the 10 year treasury rate yield tends to predict average 30 year fixed mortgage rates. If the 10 year yield moves higher expect average mortgage rates to move higher as well.
There are a number of factors at play heading into the end of the year. While 2016 is an election year there are some that believe the candidates that currently lead for their respective parties will affect the overall direction of the economy, which, in turn, will move mortgage rates. Some have highlighted the history of recent mortgage rates and you can clearly see there has been quite a bit of movement.
If homebuyers are looking to save money and not put down a huge down payment there are alternative options to conventional home loans. Some will seek out VA, USDA and FHA home mortgage options. Note that there are FHA loan limits for each county. We strongly suggest looking at the loan limits for your county before deciding on any home purchase. If there is a problem getting within the FHA loan limits you may have to seek out a Jumbo home mortgage loan or some other type of loan.
To track the 10 year treasury rate yield there are a number of valuable resource. Always check Google Finance or Yahoo! Finance to get up to date quotes. You can also use the StockCharts historical chart to see where the yield has been to predict where it is going. For the best mortgage rate and treasury yield predictions use the 50 and 200 day moving average lines. These lines tend to act as both support and resistance.