Average US Rate on 30-Year Mortgage at 4.16 Percent

WASHINGTON (AP) -

Average U.S. rates on fixed mortgages rose slightly last week, but remained near historically low levels.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan increased to 4.16 percent from 4.10 percent last week, which was the lowest level in four months. The average on the 15-year fixed mortgage rose to 3.27 percent from 3.20 percent.

Rates have been falling since September, when the Federal Reserve surprised investors by continuing to buy $85 billion a month in bonds. The purchases are intended to keep long-term interest rates low.

Slower hiring in recent months has many analysts predicting that the Fed will maintain the current pace of the bond purchases into early next year, which should keep mortgage rates low for the time being. The recent drop in mortgage rates could help boost home sales, which slowed in September after rates reached their highest averages in two years.