The average rate on 30-year fixed home loans registered 6.63% for the week ending Aug. 7, down from 6.72% last week.

There is no doubt among experts that lower mortgage rates are good news for American homebuyers. "Mortgage rates have dropped by .25 to .375 percent over the past 10 days. This means more affordability in the home that they are looking to purchase," Cohn said.

The average rate for a 30-year U.S. mortgage has fallen to its lowest level in nearly 10 months, giving prospective homebuyers a sorely needed boost in purchasing power that could help inject life into a stagnant housing market .