India, Oct. 21 -- Mortgage applications in the US declined last week even though mortgage rates dropped slightly. The Mortgage Bankers Association's (MBA) seasonally adjusted index showed that total mortgage applications dropped 5.3% from the previous week.

The average interest rate on 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less declined to 7.41% last week, down from 7.50% a week earlier. The average points paid by borrowers fell to 0.75 from 0.83, including the origination fee. These figures apply to loans with a 20% down payment, according to the MBA.

The decline in mortgage rates did not encourage more Americans to apply for home loans. Applications for both home purchases and mortgage refinancing d...