The Labor Day holiday is bound to impact real estate, but according to the latest report from a la mode, it didn’t dent appraisal volume as badly as it usually does.
The latest National Appraisal Volume Index report from a la mode, which is provided exclusively to HousingWire, recorded that appraisal volume dropped 9.7% for the week of Sept. 4, 2016.
This significantly less of a dent for the holiday week compared to the average 13.1% decline.
“With the holiday, the 4-week average dropped to -3.3% from a flat 0.8%. While this makes it down three weeks in a row, the less than average drop is encouraging,” explained Kevin Golden, director of analytics with a la mode.
Check the chart below to see appraisal volume over the past four weeks.
Click to enlarge
(Source: a la mode)
As a reminder, 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.
Check back Wednesday for a comparison to the latest mortgage application results.