Fixed mortgage rates rose for the third straight week after setting all-time lows, with the typical 30-year rate increasing from 3.59% to 3.62%, home finance giant Freddie Mac reported.
Freddie Mac's weekly survey, released Thursday morning, pegged this week's average for the 15-year fixed loan at 2.88%, up from 2.84% a week earlier. The start rates on variable-interest loans were mixed.
As the economy strengthens in fits and starts, demand decreases for the ultra-safe securities issued by the U.S. Treasury. That pushes up their yield, or effective interest rate, and many other rates, including those on mortgages, tend to follow.
The yield on the benchmark 10-year Treasury note closed at 1.8% Wednesday after bottoming out at 1.4% on July 24. The average 30-year fixed mortgage rate, as calculated by Freddie Mac, hit an all-time low of 3.49% that same week.