The weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year fixed mortgages decreased last week to 5.40 percent, down from 5.48 percent the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate Web site Zillow.com(R). Meanwhile, rates for 15-year fixed mortgages fell to 4.79 percent from 4.87 percent, and 5-1 adjustable rate mortgages also fell to 4.49 percent, down from 4.65 the week prior.

On Monday, rates for 30-year fixed purchase mortgages dropped further, with the average rate on Zillow Mortgage Marketplace at 5.31 percent.

Thirty-year fixed mortgage rates varied by state. Florida mortgage rates, and Georgia mortgage rates decreased the most, from 5.44 percent to 5.33 percent in Florida and from 5.42 percent to 5.32 percent in Georgia. Illinois mortgage rates, Massachusetts mortgage rates, New York mortgage rates and Ohio mortgage rates were the highest, each at 5.48 percent. Georgia mortgage rates were the lowest, at 5.32 percent. California mortgage rates were the most requested among all states.