Mortgage interest rates dropped again during the last week in July, opening the window of opportunity a bit more for home buyers and owners who want to refinance their mortgage. Rates have been up and down in recent weeks. As of August 1, the rate for a 30-year fixed-rate mortgage averaged 6.72 percent, with an average 0.3 point for fees, according to Freddie Mac, a major buyer of existing home mortgages. A rate drop was also experienced with 15-year fixed mortgages, adjustable-rate mortgages, and hybrids.

Mortgage rates drifted lower during the past week on indications that economic growth is moderating, inflation remains under control and the Fed just may pause raising rates for awhile, said Frank Nothaft, Freddie Macs chief economist. Meanwhile, recently released new home sales have been falling at a lower than expected rate. That drop can be traced directly to higher mortgage rates, and that helps to slow the growth of house prices this year.