Mortgage rates dropped for the second consecutive week, although the yield on the benchmark 10-year Treasury actually increased during the period, according to Freddie Mac.

The 30-year fixed-rate mortgage averaged 3.92% for the week ending July 27, down from last week when it averaged 3.96%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.48%.

Long-term mortgage rates typically move in tandem with changes in the 10-year Treasury yield. But the spread between the two can vary, resulting in one rising while the other falls.

"The 10-year Treasury yield rose 5 basis points this week while the 30-year mortgage rate dropped 4 basis points. Mortgage rates in next week's survey would depend on how the market reacts to the Fed's balance sheet unwinding announcement," said Sean Becketti, chief economist at Freddie Mac, in a press release.

The 15-year fixed-rate mortgage this week averaged 3.2%, down from last week when it averaged 3.23%. A year ago at this time, the 15-year averaged 2.78%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18%, down from last week when it averaged 3.21%. A year ago at this time, it averaged 2.78%.

Zillow's mortgage rate tracker, which came out on July 25, showed the 30-year fixed loan down 3 three basis to 3.72%.

"Mortgage rates fell to their lowest levels of the month as fears eased that the European Central Bank would soon remove recession-era polices," said Erin Lantz, Zillow's vice president of mortgages, in its press release.

"This week markets are likely to look toward Friday's second-quarter gross domestic product and consumption data for signals about the strength of the American economy. Weak data would suggest that inflation is likely to remain slow, and rates could fall in response."

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