Housingwire reported this week that appraisal volume is back on the upswing after a month-long decline. Partnering with a la mode, inc., an appraisal forms software company which has been tracking appraisal volume since 2006, they report an improvement of 2.34% for the week.
Mortgage News Daily’s Jann Swanson confirms this trend, writing that the Mortgage Bankers Association reports an increase in per loan profits, attributing some of the growth to purchase volume and loan size. MBA VP of Industry and Analysis, Marina Walsh, said about the second quarter, “However, by historical standards, production expenses remained elevated given that the average company production volume was at the highest level since inception of the [MBA quarterly survey] study in 2008.”
When mortgage volume increases, so do appraisals. Trey Garrison, in his Housingwire article, indicates that appraisal volume is an indicator of market strength, and also explains why it’s slightly more accurate than mortgage applications themselves, saying that fallout is less since they occur later in the process and after credit assessment has been performed.
All in all, this is good news for the housing industry and for the economy as a whole.