30-year fixed mortgage rates tick up to 3.42%

The average rate on a 35-year fixed mortgage ticked up to 3.42% from 3.35% a week earlier, according to mortgage finance giant Freddie Mac, which conducts a weekly survey of mortgage issuers nationwide.

The average rate for a 15-year fixed mortgage, which hit a record low two weeks ago, also ticked up -- to 2.61%. Freddie Mac keeps records on 15-year average mortgage rates dating back to 1991.

Ultra-low mortgage rates continue to encourage home buying and loan refinancings. Current rates remain comfortably close to the nationwide record low average of 3.31% in November, lowest rate on records dating back to 1971.

Mortgage buyer Freddie Mac says

The rate on 30-year loans declined to 3.35% from 3.40% last week.

Low mortgage rates have helped sustain a housing recovery that began last year. Home prices and sales are rising, and construction is up.

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