NEW YORK (CNNMoney.com) - Mortgage rates fell this week, with the 30-year rate slipping from the previous week's two and a-half year high, Freddie Mac said Thursday.

The average rate on 30-year fixed-rate mortgages fell to 6.34 percent for the week ending March 16, down from the prior week's 6.37 percent, a Freddie Mac survey said. In the year-ago period, the 30-year mortgage averaged 5.95 percent.

"Financial markets, hedging against the potential build up in inflation, pushed mortgage rates higher last week," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement. "However, market indicators this week seemed to point to less of a threat of inflation, and that allowed rates to drift a little lower."

The average rate on 15-year fixed-rate mortgages dipped to 5.98 percent from 6.00 percent last week. A year ago, the loan averaged 5.47 percent.

Five-year adjustable-rate mortgages averaged 5.93 percent, down from 6.03 percent the prior week. The five-year loan averaged 5.31 percent last year.

One-year adjustable-rate mortgages averaged 5.37 percent, down from 5.45 percent from the week before. At this time last year, the one-year loan averaged 4.20 percent.

"Housing starts fell in February as expected, but were still stronger than had been forecast, while January figures were revised upward," Nothaft said.

"This is a good sign that housing activity, although slowing from record levels set in the past few years, will continue to remain healthy this year."

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Mortgage rates have hit their highest level in nearly four years, and that has a direct impact on home affordability, click here for more.