Rates Down, Apps Up

Rates Down, Apps Up

Michael Jensen, Mortgage and Finance Guru
, Mortgage and Finance Guru

At FREEandCLEAR, we follow the Mortgage Bankers’ Association (MBA) mortgage applications index which measures both purchase and refinance applications for mortgage lenders across the country.  An increase in the MBA applications index reflects an increase in mortgage applications while a decrease in the index reflects a decline in mortgage applications.

Mortgage applications continue to fluctuate on a weekly basis with the mortgage applications index bouncing back for the week ended July 3rd as interest rates dipped moderately.  Purchase mortgage applications jumped 7.0% after dropping 4.0% the prior week.  Refinance applications increased 3.0% after decreasing 5.0% the prior week.  The composite applications index, which includes both purchase mortgages and refinancings, rose 4.6% reversing the 4.7% decline for the prior week.  Mortgage applications have bounced up and down over the past several weeks as shifting interest rates have contributed to inconsistent mortgage market activity.  After rising last week, mortgage rates pulled back with the average interest rate for conforming loans (mortgage amount less than $417,000) sliding to 4.23% as compared to 4.26% for the prior week.  (Source: Bloomberg)

What it Means for Mortgage Borrowers

Although mortgage applications continue to fluctuate, weekly upticks in the index show that borrowers remain resilient and are able to successfully access the mortgage market.  In a positive sign, applications for both home purchases and refinancings increased on the week, showing demand from both components of the mortgage market.  As expected, the mortgage market continues to be sensitive to interest rates and it will be interesting to see how potentially rising rates impact the housing market, which has showed strong signs of surging recently.  Borrowers should continue to take advantage of dips in interest rate to lock in their refinancing or home purchase mortgage at favorable terms.  Use our Mortgage Refinance Calculator to determine how much money you can save by refinancing and our Mortgage Qualification Calculator to understand what size mortgage you can afford.  Prospective and current home owners should use the INTEREST RATES function on FREEandCLEAR to keep tabs on interest rates and costs for local lenders so you can move quickly when rates reach your target level.

The FREEandCLEAR Mortgage Expert


Current Mortgage Rates in Mountain View, California as of December 2, 2020
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2.497% APR Rate: 2.375%
30 Yr Fixed30 Yr Fixed
Points: 1.0
Rate Lock: 60 days
NMLS: 357085  LICENSE: CA 00532825
Terms & Conditions
Ask about no closing cost options
Rate Lock
60 days
NMLS: 357085
LICENSE: CA 00532825

Terms & Conditions
Ask about no closing cost options
Loan terms assume conforming mortgage amount, 80% LTV ratio and minimum borrower credit score of 740. Purchases and rate and term refinances only. $150,000 minimum mortgage amount. Borrower is responsible for $1,055 lender fee. Loan terms are subject to change without notice.
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Data provided by Brown Bag Marketing, Inc. Payments do not include amounts for taxes and insurance premiums. Read through our lender table disclaimer for more on rates and product details.
About the author
Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

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