U.S. mortgage rates have declined slightly for the first time in six weeks.

Freddie Mac reported that the average interest rate on a 30-year fixed mortgage in the U.S. fell from 6.69% a week ago to 6.67%, ending a five-week streak of increases, yet still remaining at the highest level in over a year. The latest data indicates that the U.S. labor market is cooling, and the impact of the Iran war on inflation may be weaker than previously expected. U.S. price increases slowed for the second consecutive month in July, with energy, gasoline, and food prices all declining from the previous month. Core inflation metrics have dropped to their lowest level in five years. Combined with the employment report, the market believes that U.S. economic data is alleviating the pressure on the Federal Reserve to raise interest rates in the coming months, with investors reducing the likelihood of a 25 basis point hike in September from 48% to 38%. However, stagnation in negotiations over the Strait of Hormuz raises concerns about high oil prices, while high interest rates and economic uncertainty continue to suppress real estate demand. Data shows that U.S. home sales in July dropped 4.1% from June, reaching the lowest level in nearly two years.