Average 30-year mortgage rate dips to 4.22%

• Rates reverse course after rising the previous two weeks
• Average 15-year mortgage rate to 3.27%25
• Five-year adjustable mortgage fell to 2.95%25

WASHINGTON (AP) — Average U.S. rates on fixed mortgages declined this week after two weeks of increases, keeping home-buying affordable.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan fell to 4.22% from 4.35% last week. The average on the 15-year fixed mortgage dipped to 3.27% from 3.35%.

Rates had spiked over the summer and reached a two-year high in July on speculation that the Federal Reserve would slow its bond purchases later this year.

The Fed held off in September and October but in the minutes for the October meeting, policymakers said they still expected to dial down their easy-money policy within a few months. The bond purchases are intended to keep long-term interest rates low.

Mortgage rates tend to follow the yield on the 10-year Treasury note. They have stabilized since September and remain low by historical standards.

Still, mortgage rates are nearly a full percentage point higher than in the spring. The uptick has contributed to a slowdown in home sales. The National Association of Realtors said sales of existing homes fell 3.2% in October, the second straight monthly decline.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was unchanged at 0.7 point. The fee for a 15-year loan also was steady at 0.7 point.

The average rate on a one-year adjustable-rate mortgage held at 2.61%. The fee was unchanged at 0.4 point.

The average rate on a five-year adjustable mortgage fell to 2.95% from 3.01%. The fee rose to 0.5 point from 0.4 point.