WASHINGTON, April 14 (UPI) -- The volume of applications for U.S. mortgages fell in the week, despite drops in long-term interest rates, an industry group said Wednesday.
The Mortgage Bankers Association said its Market Composite Index dropped 9.6 percent, while the Refinancing Index fell 9 percent on a seasonally adjusted basis in the week ending April 9.
Mortgage activity declined "following the implementation of an increase in Federal Housing Administration mortgage insurance premiums," said Mike Frantantoni, MBA's Vice President of Research and Economics."
During the week, the average interest rate for 30-year, fixed-rate mortgages fell from 5.31 percent to 5.17 percent with points rising from 0.64 to 0.91, the organization said.
Rates for the average 15-year, fixed-rate mortgage fell from 4.54 percent to 4.45 percent, with points for 15-year contracts dropping from 0.92 to 0.8.
For one-year adjustable rate mortgages, the average interest rate fell from 7.03 percent with 0.29 points to 7.02 percent with 0.27 points, the MBA said.