Piti bagged two goals for Los Franjirojos with Franco Damian Vázquez also notching for the visitors in between.
Piti's first in the 20th minute was equalised by Robert Acquafresca after half-time.
Rayo went 3-1 up before Vicente Iborra's headed consolation in the 86th minute.
The Ciutat de Valencia side went down 3-2 to the Franjirrojos to maintain their 13th place in the table.
Levante coach Juan Ignacio Martinez was blunt in his assessment after his team failed to win for the seventh straight game.
“You could say a lot of things on why we are where we are,” he said. “But the bottom line is that we haven't won games.
“Rayo are a team that play all the way through the game, so they leave you with very few options.
“They put us under a lot of pressure and made the most of their chances.”
Los Granotes are in 13th place with a record of 11 wins, 16 losses and nine draws.
With 49 points Rayo Vallecano trail Málaga by five for the final Europa League spot, and have compiled a record of 15 wins, 17 losses and four draws.
Paco Jemez has insisted that his Rayo Vallecano team 'deserve' to be in the Europa League next term.
“We are all fighting for something that would be truly historic for this football club,” he said.
“Our attitude this season has been faultless.
“Getting to the Europa League would be an award we deserve.
“We sometimes made it complicated for ourselves here today, but we have been very good in parts.”
There are just two games left to play.
- Sports & Recreation
- Rayo Vallecano
- Robert Acquafresca