US mortgage rates have edged lower for the first time in six weeks, following fresh data indicating a cooling labor market and limited impact from the Iran conflict on last month's inflation.

Freddie Mac announced in a statement on Thursday that the average rate for a 30-year fixed-rate mortgage fell to 6.67% from 6.69% the previous week, ending a five-week streak of increases. Despite the dip, rates remain at their highest level in over a year.

Data suggests the Iran war had only a restrained effect on inflation. US consumer prices rose at a slower pace for the second consecutive month in July, with declines in energy, gasoline, and food prices compared to the prior month. A separate measure of core inflation also held steady at a five-year low, matching the level seen in February.

Combined with the July employment report, the latest economic indicators have eased pressure on the Federal Reserve to raise interest rates in the coming months. According to the CME Group's FedWatch Tool, following the release of the Consumer Price Index (CPI), investor expectations for a 25-basis-point rate hike at the Fed's September meeting dropped to 38% from 48% the previous day.

"With inflation remaining elevated due to the Middle East conflict and the Fed focused on reducing it, mortgage rates face little downward pressure," said Joel Berner, senior economist at Realtor.com, in a report. "Current mortgage rate levels may become the norm in the months ahead."