Appraisal volume recovered after last week’s fall and increased 3.7% for the week of March 20, pushing the 4-week moving average higher, according to the latest report from a la mode, an appraisal forms software company that tracks appraisal volume throughout the country.
Despite a mostly positive winter season, appraisal volume still concluded on a low note last week, with the 4-week average coming in at 2.3%.
However, the 3.7% rise this week pushed the 4-week average up to 2.8%.
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(Source: a la mode)
“This is a positive sign for the spring buying season. Last week’s drop of 4.4% in the Index had the winter season end on a sour note. The improvement from 2.3% to 2.8% shows modest strength in the market,” explained Kevin Golden, director of analytics with a la mode.
Appraisal volume is an indicator of market strength and has some advantages over mortgage applications. Fallout is less for appraisals since they are ordered later in the mortgage process after credit worthiness is determined and there are few multiple-orders.
a la mode captures 50% of the appraiser market – more than 6 million appraisals per year since the fourth quarter of 2006.