Mortgage rates increased for a third straight week, with the average conforming 30-year fixed mortgage rising to 5.35 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.47 discount and origination points.

The average 15-year fixed mortgage hit a new high-water mark for 2010 at 4.69 percent and the larger jumbo 30-year fixed rate increased to 5.98 percent. Adjustable rate mortgages were mostly higher, with the average 5-year ARM climbing to 4.55 percent while the 7-year ARM crested to 5.04 percent.

Upbeat news on the economy propelled mortgage rates higher for a third week in a row. The average 30-year fixed mortgage rate is now at a five-month high. Positive news on both the manufacturing and service sectors of the economy, coupled with a return to job growth, lifted yields on government debt as investors clamor for better returns. Mortgage rates are closely related to yields on long-term Treasury securities. Looming government debt auctions were also a contributing factor in this week's increase.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.35 percent, the monthly payment for the same size loan would be $1,116.83, a savings of $125 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 5.35% - up from 5.23% last week (avg. points: 0.47)

15-year fixed: 4.69% - up from 4.53% last week (avg. points: 0.37)

5/1 ARM: 4.55% - up from 4.51% last week (avg. points: 0.34)