As spring home buying season nears closer, appraisal volume jumped 8.4% for the week of Feb. 21, marking the fifth consecutive week of increases, according to a la mode, an appraisal forms software company that tracks appraisal volume throughout the country, and reported by Brena Swanson of HousingWire.
The increase was massive when compared to the 1.9% jump during the week of Feb. 14. Appraisal volume is an indicator of market strength and has some advantages over mortgage applications. Fallout is less for appraisals since they are ordered later in the mortgage process after credit worthiness determined and there are few multiple-orders.
Just because an appraisal is completed, doesn’t mean the mortgage transaction will close, particularly when it comes to refinances, notes Phil Huff, president and CEO of Platinum Data Solutions. “Spring buying season started earlier this year. That, and continued low rates are prompting home buyers to get into the market,” he said.