U.S. mortgage rates edged down to a two-year low this week, which could provide a further boost to refinancing activity, though many potential home buyers remain on the sidelines.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, increased slightly this week. The average rate rose to 5.16 percent from 5.15 percent last week. A year ago, it averaged 6.72 percent, Freddie Mac said.

Mortgage rates showed little movement this week with 15-year mortgages ticking up, but the average 30-year fixed-rate mortgage inched down to the lowest level since 2022.

After sinking last week to its lowest level since 2022, the 30-year mortgage rate average has edged higher. But so far it's holding in a range not far above the recent low.

Long-term mortgage rates trended down to its lowest level in two years, according to the latest Freddie Mac Primary Mortgage Survey.