Industry data released on Wednesday showed that mortgage application volume fell 11 percent last week, as refinance activity slid nearly 11 percent. The decline in applications comes despite a drop in interest rates across the board, which usually encourages mortgage activity.

The Mortgage Bankers Association revealed that its market index of mortgage application volume fell 11 percent on a seasonally adjusted basis for the week of April 10th. The Market Composite Index was 1113.2 compared to 1250.6 in the previous week.

On an unadjusted basis, the index slid 10.9 percent, although it was up 45.6 percent on a year-over-year basis. The MBA does not provide a holiday adjustment for the Easter/Passover weekend, which may have contributed to this week's decrease in application volume, it said.

The Refinance Index decreased 10.9 percent to 6071.7 from 6813.5 the previous week and the seasonally adjusted Purchase Index decreased 11.3 percent to 264.1 from 297.7 one week earlier. The Conventional Purchase Index decreased 13.5 percent while the Government Purchase Index (largely FHA) decreased 7.7 percent.

The Refinance Index fell 10.9 percent from the previous week. For the week of April 10th, the index fell to 6071.7 from 6813.5 in the previous week. The percentage of mortgage activity taking place through refinancing was practically unchanged, at 77.8 percent versus 77.9 percent in the previous week.

The conventional and government purchase indices both decrease, with the conventional purchase index plunging 13.5 percent and the government purchase index, largely made up of FHA loans, slipping 7.7 percent.

The adjustable rate mortgage share of activity remained unchanged from the previous week at 1.5 percent of total applications.

Interest rates declined across the board, with 30-year fixed-rate mortgages sliding further below 5 percent to 4.70 percent from 4.73 percent last week. The rates for 15-year fixed-rate edged down slightly to 4.46 percent from 4.49 percent last week. One-year ARMs also moved down only very slightly, with their contrast interest rates hitting 6.21 percent from 6.23 percent.

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