Average 30-year US mortgage rate rises to 3.66 percent

WASHINGTON (AP) — Long-term U.S. mortgage rates rose this week for a third straight week yet remained near three-year lows as the home buying season progresses.

Mortgage buyer Freddie Mac said today the average 30-year fixed-rate mortgage increased to 3.66 percent from 3.64 percent last week. That is well below its level a year ago of 3.87 percent.

The average rate on 15-year fixed-rate mortgages rose to 2.92 percent from 2.89 percent.

U.S. government bond prices have declined, raising long-term bond yields, in the past few weeks since the Federal Reserve indicated that an interest-rate increase is likely this month if the economy keeps improving.

Long-term bond yields tend to influence mortgage rates.

Bond prices began rising, and yields declined, this week, however. The yield on the 10-year Treasury note dipped to 1.84 percent Wednesday from 1.87 percent a week earlier. It fell to 1.82 percent this morning.