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US mortgage applications rose slightly last week, despite lower interest rates.

Total application volume rose 0.6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Refinance applications were up 1% compared to the previous week but were about 42% higher than the same period last year.

The average interest rate on the 30-year fixed-rate mortgage fell to 6.34%, the lowest level in a year, compared to 6.39% the previous week.

“The refinance boost last week was from government applications, with VA refinance volume up almost 15%,” said Mike Fratantoni, Senior Vice President and Chief Economist at the MBA