Appraisal volume recovered from the drop in volume caused by Memorial Day. However, although volume increased, the rise was less than the typical increase witnessed after the holiday, the latest National Appraisal Volume Index from a la mode found.
a la mode is an appraisal forms software company that provides its findings exclusively to HousingWire each week.
According to the latest data, the National Appraisal Volume Index bounced back from the holiday week, rising 16.0%. While this is more than the 13.2% drop the previous week, it is slightly less than the average bounce since 2007, bringing the four-week average to 0.0%.
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(Source: a la mode)
As the spring-buying season comes to a close, Kevin Golden, director of analytics with a la mode, explained that spring this year limped along, with the general economy showing signs of weakness and strength.
Earlier in May, Golden said that a handful of factors were coming together to hinder the spring-buying season, including a stagnant economy and tough labor numbers.
Now looking ahead, he said, “With the recent flight to quality we’ve seen, it doesn’t look like there will be a will be a strong upward push on interest rates this summer, so I’d expect the housing market to plod along.”
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.