Appraisal volume continues to struggle to lift off this fall, with volume now declining four weeks straight, according to the latest report from a la mode.
For the week of Oct. 9, the National Appraisal Volume Index slightly dipped 0.1%. However, the drop is smaller than the last report’s 4.1% decline and is the smallest drop over the last four weeks.
As a result of this week’s decline, the four-week moving average fell into negative territory, falling to -0.9%.
The report noted that rising interest rates have put a slight damper on the market. The latest report from Freddie Mac stated that mortgage interest rates are at their highest level in four months, now hitting pre-Brexit levels.
Check the chart below, which is provided exclusively to HousingWire, to see appraisal volume over the past four weeks.
Click to enlarge
(Source: a la mode)
As a reminder for those new to the data, 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.
Lately, the Mortgage Bankers Association Weekly Mortgage Applications Survey has mirrored appraisal volume, posting very meager changes over the past several weeks.