After two full years, the COVID-19 pandemic has done a number on the U.S. housing market. Congresswoman Maxine Waters has announced plans to propose federal legislation designed to reduce the racial gap in home appraisals. After a week of declines, mortgage rates are back on the rise. With the new Fannie Mae and Freddie Mac desktop appraisal option going live this month, McKissock Learning has released an updated CE course to reflect the new guidelines. Keep reading for more appraisal news.
Two years later: How the pandemic has rocked the U.S. housing market
“This week marks the two-year anniversary of the coronavirus pandemic, which the World Health Organization officially declared a pandemic on March 11, 2020.” This Redfin News article provides an overview of “how drastically the housing market has changed since then.” Here are the highlights:
- Buyers have half as many homes to choose from.
- Homes are 34% more expensive.
- Twice as many homes are selling above list price.
- Homes are selling twice as fast.
- A record share of homebuyers face bidding wars.
- Nearly one-third of homebuyers are looking to relocate.
- Mortgage rates have returned to pre-pandemic levels after hitting a record low.
- The second-home market is booming.
Federal legislation could tackle the racial gap in home appraisals
According to this recent Bloomberg story, “Congresswoman Maxine Waters wants a bill to address discrimination in appraising home values, a decades-long problem that is starting to get broader recognition.”
In a letter to appraisal industry leaders and regulators in late February, Congresswoman Waters—chair of the House Financial Services Committee—”announced plans to propose legislation reining in racial discrimination in home appraisals…The committee will convene hearings in the coming months to prepare for a bill to be filed.”
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After week of declines, mortgage rates back on the rise
“According to Freddie Mac’s latest Primary Mortgage Market Survey (PMMS), the 30-year fixed-rate mortgage (FRM) began to climb once again, averaging 3.85% with an average 0.8 point for the week ending March 10, 2022,” up from 3.76% last week.
This article from the MReport quotes Sam Khater, Freddie Mac’s Chief Economist, as stating, “‘Over the long-term, we expect rates to continue to rise, as inflation broadens and shortages increasingly impact many segments of the economy. However, uncertainty about the war in Ukraine is driving rate volatility that likely will continue in the short-term.'”
McKissock course updated to reflect new Fannie Mae and Freddie Mac desktop appraisal option
The new Fannie Mae and Freddie Mac desktop appraisal option goes live this month (mid-March 2022). To help you stay up-to-date on the latest changes, we at McKissock Learning have updated our appraisal CE course, Best Practices for Bifurcated and Hybrid Appraisals, with Fannie Mae’s and Freddie Mac’s guidelines on how to complete the 1004 Desktop/70D appraisal form.
In addition, Jo Traut, Curriculum Program Director, Appraisal at McKissock Learning, has written an article providing insight into Fannie Mae and Freddie Mac desktop appraisals so that you can make an informed decision regarding acceptance or rejection of these assignments.
CE course: Enroll in Best Practices for Bifurcated and Hybrid Appraisals—now updated with Fannie Mae’s and Freddie Mac’s guidelines on how to complete the 1004 Desktop/70D appraisal form.