Mortgage Rates Rose for the Third Week in a Row

Average U.S. rates on fixed mortgages rose this week for the 3rd week in a row to their highest levels since mid-March. Even with the gains, they remained close to historic lows.

The average rate for the 30-year loan increased to 3.59%. That's up from 3.51% last week but near the record low of 3.31%. The rate on the 15-year loan jumped to 2.77% from 2.69% last week. The record low is 2.56%.

Mortgage rates rose because they tend to track the yield on the 10-year Treasury note, which rose above 2% this week for the first time since March 14.

The increase came in reaction to the release of minutes from an April 30-May 1 Federal Reserve meeting on interest-rate policy. The notes showed some Fed officials were willing to start cutting back on a bond-buying program as early as June if the economic recovery strengthens. The program involves buying $85 billion per month in Treasury bonds and mortgage-backed securities to keep rates low as a stimulus to the economy. In testimony to Congress on Wednesday, Fed Chairman Ben Bernanke said the central bank will continue the stimulus until the outlook for the labor market improves “substantially." But pressed for more specifics, Bernanke didn't rule out cutting back on bond purchases by the end of the summer.