Appraisal volume dropped 3.9% as the housing market moves into the final weeks of the year, according to the latest report from a la mode.
The drop quickly put an end to the recent increases in appraisal volume witnessed the past couple of weeks.
As a result, the four-week average dropped further into negative territory, declining to -1.9%.
The report attributed the fall to rising interest rates and the impending holidays.
Check the chart below, which is exclusively provided to HousingWire, to see appraisal volume over the past four weeks.
Click to enlarge
(Source: 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.