Mortgage rates moved back below 4%, pushed by last week's weak economic data report, according to Freddie Mac.

The 30-year fixed-rate mortgage averaged 3.96% for the week ending July 20, down from last week when it averaged 4.03%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.45%.

The decline partially reversed a 15-basis-point spike in mortgage rates over the previous two weeks.

"Mortgage rates fell from 60-day highs last week, prompted by weak domestic inflation and retail sales data, and reports that interest rates could rise in Europe as the European Central Bank ends recession-era policies," said Erin Lantz, vice president of mortgages at Zillow, which has its own rate tracking report.

"Continued economic uncertainty and weak inflation data pushed rates lower this week. The 10-year Treasury yield fell 5 basis points this week. The 30-year mortgage rate moved with Treasury yields, dropping 7 basis points," said Sean Becketti, chief economist at Freddie Mac, in a press release.

The 15-year fixed-rate mortgage this week averaged 3.23%, down from last week when it averaged 3.29%. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.75%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.21%, down from last week when it averaged 3.28%. A year ago at this time, it averaged 2.78%.

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