Fixed rates for 30-year home loans rose in the week ended Thursday, Freddie Mac said.

The average 30-year rate increased two basis points, to 5.14%, Freddie said.

"Rates are fairly stable and low right now," said Celia Chen, a senior director at Moody's in West Chester, Pa. "Conditions are looking more positive than they have for a long time."

The Federal Reserve set out last year to reduce mortgage rates by buying bonds backed by home loans. It increased the size of its program to $1.25 trillion in March.

The plan helped cut the average mortgage rate to a record low of 4.78% twice in April.

Rates started climbing in May along with Treasury yields, on investor concern that higher government debt would fuel inflation. The 30-year mortgage rate reached 5.59% in the week ended June 11, but has since fallen back.

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