Mortgage rates up slightly this week to a still-low 3.12%

By MATT OTT
AP Business Writer

SILVER SPRING, Md. (AP) — The average interest rate on a long-term mortgage in the U.S. ticked up slightly this week but remain historically low just as the Federal Reserve announces that it will begin tightening credit. Mortgage buyer Freddie Mac reported Thursday that the average rate on the benchmark 30-year, fixed rate home loan was up this week to 3.12% from 3.10% last week. On Wednesday, the Federal Reserve announced as expected that it would begin dialing back its monthly bond purchases. That could raise borrowing costs, but even with three rate increases next year, its benchmark rate would still be historically low, below 1%.