Mortgage rates dropped slightly in the latest Freddie Mac Primary Mortgage Market Survey after increasing nearly every week for the past two months.

According to the survey, the average rate on a 30-year fixed mortgage was 4.83 percent for the week ending November 1. That was down three basis points from 4.86 percent the week before. A year ago, the average 30-year fixed rate was 3.94 percent.

Rates on 15-year fixed mortgage dropped by a greater margin. The average for las week was 4.23 percent, compared with 4.29 percent the week before. A year ago at this time, the 15-year rate averaged 3.27 percent.

Average rates on 5-year adjustable rate mortgages were 4.04 percent last week. The average was 4.14 percent the week before and 3.23 percent at this time last year.

“While higher mortgage rates have led to a decline in home sales this year, the weakness has been concentrated in expensive segments versus entry-level and first-time buyer which remains firm throughout most of the rest of the country,” said Freddie Mac Chief Economist Sam Khater.
“Despite higher mortgage rates, the monthly mortgage payment remains affordable. For many buyers the chronic lack of entry-level supply is a larger hurdle than higher mortgage rates because choices are limited and the inventory shortage has caused home prices to rise well above fundamentals.”