Low appraisals are holding back housing

BloombergView reports that one of the main, and unwelcome, consequences of the housing bust are rampant, widespread low appraisals.
Sept. 26, 2014
66fdbde4d4ea383710a59776 Neighborhood 0
A recent working paper by the Federal Reserve Bank of Philadelphia looked at the impact the Home Valuation Code of Conduct has had on the outcome of appraisals and mortgages. Inflated appraisals, which contributed to the housing bust, were replaced by low appraisals during the housing-market collapse. But the study indicates that the impact of low appraisals also may be problematic because higher levels of loan rejections put a damper on the housing market.Read more
Sign up for Pro Builder Newsletters
Get the latest news and updates.