Mortgage rates dropped slightly during the week ending Nov. 1, falling back after increases in the previous period, according to the Primary Mortgage Market Survey released by Freddie Mac.
The average rate for 30-year fixed-rate mortgages fell to 4.83%, with an average 0.5 point, from 4.86%. The mortgage averaged 3.94% in the same period in 2017.
The 15-year fixed-rate mortgage averaged 4.23%, with an average 0.5 point, down from 4.29%. A year ago at this time, the mortgage averaged 3.27%.
Rates for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.04%, with an average 0.3 point, a decline from the previous average of 4.14%. The 5-year ARM averaged 3.23% in the year-ago period.
“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,” Freddie Mac Chief Economist Sam Khater said. “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.”