NEW YORK - September 29, 2010 - U.S. mortgage applications fell for a fourth straight week, reflecting the inability of many homeowners to take advantage of record low interest rates, data from an industry group showed on Wednesday.

Demand for loans to purchase a home, however, rose for the first time in three weeks, offering a glimmer of hope for a housing market that is struggling to stand on its own without government support.

The Mortgage Bankers Association on Wednesday said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended September 24 decreased 0.8%. The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was down 3.3%.

The MBA’s seasonally adjusted purchase index, a tentative early indicator of home sales, increased 2.4%.

Jim Gillespie, CEO of Coldwell Banker Real Estate LLC in Parsippany, New Jersey, said the weak labor market has kept many potential home buyers sidelined.