The latter part of 2016 saw homeowners' assessment of their homes inch closer to actual appraisal amounts. Then, in November the gap between the two shrunk to nearly nothing. However, December's slow down in price growth resulted in homeowners' estimates and appraisal prices widened for the first time since June 2016.
According to Quicken Loans' National Home Price Perception Index, the average appraised value declined 1.33 percent below expectations in December. This is a larger difference than the mere one percent the month prior. Home prices dipping 1.19 percent last month could be largely responsible for the widening gap.
Nonetheless, home prices increased 3.85 percent nationwide over the last twelve months. It remains to be seen if homeowners' will be able to more closely align their expectations to reality in 2017 with home prices continuing their upward trend.
Meanwhile, conforming no-point 30-year fixed rates are averaging 4.125 percent while the 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.