Mortgage rates ticked up slightly from the previous week as investors continue to expect the Federal Reserve to cut interest rates next month.

The average rate on the 30-year fixed-rate mortgage ticked up to 6.49% from 6.47% last week, Freddie Mac reported on Thursday, marking its lowest level in more than a year. A year ago, the average rate on a 30-year fixed-rate loan was 7.09%.

Separately, the average rate for the 15-year fixed mortgage was 5.66%, up from 5.63% a week prior. The rate on a 15-year loan was 6.46% a year ago.

“While rates increased slightly this week, they remain more than half a percent lower than the same time last year,” Sam Khater, Freddie Mac’s chief economist, wrote in a statement.

“In 2023, the 30-year fixed-rate mortgage nearly hit 8 percent, slamming the brakes on the housing market. Now, the 30-year fixed-rate hovers around 6.5 percent and will likely trend down in the coming months as inflation continues to slow. Lower rates are good news for potential buyers and sellers alike.”

Despite this week’s uptick, the recent downward trend in rates has spurred some activity in the market. Applications to purchase a home increased by 3% from the previous week but still are 8% lower than the same week a year ago, per data from the Mortgage Bankers Association (MBA) released Wednesday.

Meanwhile, homeowners are capitalizing on the opportunity to restructure their existing loans.

Applications to refinance a home loan surged 35% from the previous week and were 118% higher than the same week a year ago, according to MBA, the strongest weekly gain since May 2022.