Appraisal volume, not surprisingly, recorded another slow week, with the National Appraisal Volume Index only growing 0.2% for the week of May 15, the latest appraisal volume numbers from a la mode found.
a la mode is an appraisal forms software company that provides its findings exclusively to HousingWire.
Appraisal volume is an indicator of market strength and holds some advantages over mortgage applications.
For example, 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, by the time an appraisal is conducted.
a la mode captures 50% of the appraiser market – more than 6 million appraisals per year.
Kevin Golden, director of analytics with a la mode, noted that it was another lackluster week of growth for the National Appraisal Volume Index.
“This was down from the 1.8% growth the previous week. The four-week average growth dropped slightly to 1.1% from 1.3%. Last week the uncertainty of the Fed’s interest rate policy appears to keep the market mulling along,” he said.
Although nothing is set in stone, New York Federal Reserve President William Dudley went on record last week, telling the industry to expect a rate hike soon. “We are on track to satisfy a lot of the conditions" for a rate increase, Dudley said, reinforcing comments from several other Fed officials.
As the market awaits pending Fed news on interest rates, the market continues to produce weak results. In last week’s numbers, Golden explained why this spring home-buying season isn’t turning into the hot buying season it’s supposed to be.
Gold attributed the lack of growth to a flurry of factors that are growing into the "perfect storm" to hinder housing.