Mortgage rate rises to 3.4% on average

WASHINGTON (AP) — The average interest rate on 30-year fixed mortgages was little changed this week, staying slightly above its record low.

Cheap mortgages are helping drive a modest housing recovery.

Mortgage buyer Freddie Mac says the rate on 30-year loans rose to an average 3.40% from 3.39% last week. Five weeks ago, the rate touched 3.36%, lowest level on records dating to 1971.

The average on the 15-year fixed mortgage slipped to 2.69%. That's down from 2.70% last week and close to the record low of 2.66% three weeks ago.

The average rate on the 30-year loan has been below 4% all year. It has fallen further since the Federal Reserve started buying mortgage bonds in September to encourage more borrowing and spending.