Mortgage rates rise for second straight week, sapping refinancing demand

Core Insights - Mortgage rates have increased slightly for the second consecutive week, with the average 30-year fixed-rate mortgage at 6.34% and the 15-year mortgage rate at 5.55% [1][2] Group 1: Mortgage Rate Trends - The average 30-year fixed-rate mortgage rose from 6.3% to 6.34%, while the 15-year mortgage rate increased from 5.49% to 5.55% [1] - Mortgage rates have been gradually rising since the Federal Reserve's recent benchmark interest rate cut, reflecting investor uncertainty regarding future rate cuts [2] Group 2: Economic Impact and Employment Data - The 10-year Treasury yield, which closely tracks mortgage rates, has been volatile, recently standing near 4.1% [2][3] - A report from ADP indicated that private employers shed 32,000 jobs last month, contributing to the uncertainty surrounding economic conditions [3] Group 3: Refinancing and Borrower Demand - The government shutdown has delayed key economic data, including the monthly nonfarm payrolls report, which previously influenced Treasury yields and mortgage rates [4] - Refinancing applications dropped by 21% compared to the previous week, while overall mortgage applications decreased by 1% [4] - Increased mortgage rates have cooled borrower demand, although purchase applications remain above year-ago levels due to lower rates [5]