30-year fixed mortgage rate jumps to 4.6 percent

Freddie Mac recently released its Primary Mortgage Market Survey, which found the 30-year fixed rate mortgage averaged 4.6 percent this week, up from 4.51 percent last week, and the 15-year fixed rate mortgage averaged 3.75 percent, an increase from 3.69 percent last week.

The 5-year Treasury-indexed ARM averaged 3.3 percent this week, up from 3.22 percent last week, while the 1-year Treasury-indexed ARM also rose, averaging 3.01 percent in comparison to last week's 2.97 percent.1

Vice president and chief economist at Freddie Mac, Frank Nothaft, said mortgage rates still remain affordable by historical standards.

"With today's rates, these homeowners who have the ability to refinance could save $169 per month in interest payments on a $200,000, 30-year fixed mortgage," said Nothaft.

According to The Associated Press, mortgage rates track the 10-year Treasury note yield which continues to rise, and the completion of the Federal Reserve's $600 million bond buying program could allow mortgage rates to rise even further.

The Fed has purchased nearly $75 billion in bonds monthly since November, which has driven the 10-year Treasury note below 3 percent and lowered mortgage and other loan rates. But low rates and low home prices have yet to stimulate the weak housing market. Economists do not foresee a recovery in home prices until 2013 at the earliest, the new source reported. 

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