Average Long-Term Mortgage Rates Rise; 30-Year at 3.81%

WASHINGTON (AP) -
mortgage rates
A new home is for sale last month in Mechanicsville, Va. (AP Photo/Steve Helber)

Long-term mortgage rates rose this week after three weeks of holding steady, tipped higher by expectations that the Federal Reserve could reduce interest rates soon.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year mortgage increased to 3.81% from 3.75% last week. Those are historically low levels for the key rate, which a year ago stood at 4.52%.

The average rate for 15-year, fixed-rate home loans ticked up to 3.23% from 3.22% last week.