Rates dropped slightly in the wake of last week’s increases, according to its Primary Mortgage Market Survey from Freddie Mac.

“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 Sam Khater, chief economist for Freddie Mac. “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.”

News Facts:

• 30-year fixed-rate mortgage averaged 4.83 percent with an average 0.5 point for the week ending Nov. 1, 2018, down from last week when it averaged 4.86 percent. A year ago at this time, the 30-year FRM averaged 3.94 percent.
• 15-year fixed-rate mortgage averaged 4.23 percent with an average 0.5 point, down from last week when it averaged 4.29 percent. A year ago at this time, the 15-year FRM averaged 3.27 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.04 percent with an average 0.3 point, down from last week when it averaged 4.14 percent. A year ago at this time, the 5-year ARM averaged 3.23 percent.

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