Mortgage rates are down again this week, but remain too high to spark any significant movement in the housing market as the affordability crisis remains set in.

Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage fell to 6.35% this week from 6.46% last week. The average rate on a 30-year loan was 7.18% a year ago.

"Mortgage rates fell again this week due to expectations of a Fed rate cut," said Sam Khater, Freddie Mac’s chief economist. "Rates are expected to continue their decline and while potential homebuyers are watching closely, a rebound in purchase activity remains elusive until we see further declines."

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The average rate on the 15-year fixed mortgage declined to 5.51% from 5.62% last week. One year ago, the rate on the 15-year fixed note averaged 6.55%.