The 30-year, fixed-interest rate averaged 6.52 percent with an average 0.7 points for the week ending July 31, compared with 6.63 percent the previous week, Freddie Mac (NYSE:FRE) said.

A year ago, 30-year, fixed-rate mortgages were marginally higher at 6.68 percent.

At 6.07 percent with an average 0.6 points, the 15-year, fixed-rate average also dropped, down from the previous week's average of 5.18 percent.

"Mortgage rates moved lower this week as a drop in commodity prices eased market concerns over inflation pressures," said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, the Department of Energy reported that gasoline prices were the lowest since the end of May, and oil prices were at levels not seen since early May," he said.

The housing market was hit with "mixed reports" during the week, Nothaft said.

"While the months of supply for existing single-family homes for sale rose to 11 months in June, the supply of new homes fell for the second consecutive month to 7 months," he said.