The average long-term U.S. mortgage rate rose slightly this week but remains near a three-year low, with the 30-year fixed rate at 6.09% and the 15-year fixed rate at 5.44%. Mortgage rates are influenced by various factors including Federal Reserve decisions and bond market expectations.

The increase in rates follows a rise in the 10-year Treasury yield due to geopolitical tensions and market turbulence, with the yield at 4.27%. The U.S. housing market has been in a sales slump since 2022, with higher mortgage rates, soaring home prices, and a housing shortage contributing to low sales.

Mortgage refinancing applications surged 20% last week, comprising 62% of all home loan applications, while applications for home purchase loans increased by 5%. Economists predict mortgage rates to decrease this year, but average rates are expected to remain above 6%.

Despite the potential for lower rates, many homeowners with existing fixed-rate mortgages below 5% are unlikely to refinance at higher rates. Nearly 69% of U.S. homes with mortgages have rates at or below 5%, with over half at or below 4%, according to Realtor.com.

Read more at Yahoo Finance: Average US long-term mortgage rate edges higher, but still near lowest point in more than 3 years