The average interest rate on a 30-year fixed mortgage stands at 6.69%, which is down from a rate as high as 6.83% in late July, according to Mortgage News Daily. 

The decline in mortgage rates corresponds to drops in oil prices and Treasury yields, which closely track mortgage rates, ABC News reported. 

Despite the drop in mortgage rates, they still remain considerably higher than before the war in Iran began at the end of February, when the average 30-year fixed mortgage stood just below 6%. 

At that time, U.S. Treasury yields, which are the amount paid annually to holders of government debt, jumped, and mortgage rates responded with a sharp rise. Since bonds pay a fixed amount each year, the possibility of inflation risks higher consumer prices. That would eat away at those annual payouts. Bonds then become less desirable, and as demand falls, bond yields rise. 

In addition to falling oil prices during a pause in the fighting, favorable government data on prices lowered inflation expectations. As a result, mortgage rates fell.