Mortgage rates fell for a sixth consecutive week to the lowest level in more than two months, mortgage buyer Freddie Mac said on Thursday.

Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage decreased to 6.76% from last week's reading of 6.85%. The average rate on a 30-year loan was 6.94% a year ago.

"The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home," said Sam Khater, Freddie Mac’s chief economist.

The average rate on the 15-year fixed mortgage fell to 5.94% from 6.04% last week. One year ago, the rate on the 15-year fixed note averaged 6.26%.