Appraisal volume for the week of July 31 reversed course after the prior week’s decline, rising a slight 1.4%, the latest National Appraisal Volume Index from a la mode found.
Most notably in this week’s report is the steep rise in the 4-week moving average, which jumped up 6.4%, primarily drive by the Fourth of July holiday week dropping off.
This is up from 2.1% in the previous report.
This chart shows appraisal volume, exclusive to HousingWire readers, over the last four weeks.
Click to enlarge
(Source: a la mode)
“This year’s summer doldrums continue. Aside from the holiday fluctuations, the housing market has been in a slight upward trend. Tight credit and high home prices have muted any boost from low interest rates and good employment figures,” said Kevin Golden, director of analytics with a la mode.
Appraisal volume is an indicator of market strength and holds some advantages over weekly mortgage applications.
For example, fallout is less for appraisals since they are ordered later in the mortgage process, after creditworthiness is determined, and there are few multiple-orders, by the time an appraisal is conducted.
The Mortgage Bankers Association is schedule to report this week’s mortgage application report early Wednesday morning. In last week’s report, mortgage applications posted a 3.5% drop from one week earlier.