Mortgage rates fell to a 10-month low, mortgage buyer Freddie Mac said Thursday.

Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage fell to 6.56% from last week's reading of 6.58%.

The average rate on a 30-year loan was 6.35% a year ago.

"Purchase demand continues to rise on the back of lower rates and solid economic growth," said Sam Khater, Freddie Mac’s chief economist. "Though many potential homebuyers still face affordability challenges, consistently lower rates may provide them with the impetus to enter the market."

Meanwhile, the average rate on the 15-year fixed mortgage is unchanged from last week's reading of 5.69%. One year ago, the rate on the 15-year fixed note averaged 5.51%.

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