Fewer people seek loans to buy homes

The seasonally adjusted total of applications for purchase loans decreased 4.7 percent in the week that ended Friday compared with the week before, marking the sixth consecutive weekly decline. Refinance applications fell 1.4 percent last week.

Rates for traditional 30-year, fixed-rate mortgages dropped below 5 percent in mid-September, helping to trigger a mini-boom in mortgage applications, particularly for refinance loans. But recently, fewer people across the country have applied for mortgages even though the mortgage bankers' survey shows rates have continued to decline.

Last week, the average contract interest rate on 30-year fixed-rate mortgages for borrowers with good credit and a 20 percent down payment or equity decreased to 4.83 percent, a six-month low, from 4.9 percent the week before. Upfront fees on such loans, including so-called points paid to lenders, averaged 1.17 percent of the loan value, up from 1.03 percent.

For 15-year, fixed-rate mortgages, the average interest rate edged down to 4.32 percent from 4.33 percent, with average upfront fees falling to 1.01 percent from 1.15 percent.

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