Mortgage rates inched higher for a second consecutive week but remain near yearly lows. The average 30-year fixed-rate mortgage was 6.34% this week, up from 6.3% the previous week. The 15-year mortgage rate also rose to 5.55% from 5.49%. Rates have been affected by uncertainty around future rate cuts after the Federal Reserve’s recent interest rate reduction.

The 10-year Treasury yield, which influences mortgage rates, has fluctuated amid economic concerns, standing near 4.1% on Thursday. Investors are monitoring the impact of the government shutdown on the economy, with the recent report showing a surprising loss of 32,000 private sector jobs. Economic data releases, including the nonfarm payrolls report, have been delayed due to the shutdown.

Mortgage rates at current levels have led to a decline in refinancing applications, dropping 21% compared to the previous week. Despite this, overall mortgage applications decreased by only 1%. The slowdown in borrower demand has been attributed to economic uncertainty and affordability challenges affecting home sales. Mortgage rates are expected to remain stable in the near future.

Read more at Yahoo Finance: Mortgage rates rise for second straight week, sapping refinancing demand