Rate on 30-year fixed mortgage rises to 4.60 pct.

Friday, July 1, 2011, Vol. 35, No. 26

WASHINGTON (AP) — Fixed mortgage rates rose this week by the most in four months.

Freddie Mac says the average rate on the 30-year loan increased to 4.60 percent, up from 4.51 percent a week ago. It hit its lowest level of the year three weeks ago, at 4.49 percent.

The average rate on the 15-year fixed mortgage, a popular refinancing option, rose to 3.75 percent. It reached its low point of the year two weeks ago, at 3.67 percent.

Rates typically track the yield on the 10-year Treasury note, which has been rising. And mortgage rates could rise further now that the Federal Reserve's $600 billion bond buying program has ended.

Low mortgage rates and plummeting home prices have done little to boost the troubled housing market.