The MReport Webcast: Monday 9/29/2014

Despite complaints that low appraisals are disrupting home sales, a new analysis from FNC Inc. argues that valuations have had little impact in the delayed housing recovery. While Realtors in recent years have reported delayed or even canceled contracts as a result of lower than expected appraisals, FNC maintains that despite anecdotal reports, quote-- there is no strong evidence that low appraisal valuations contributed to mortgages falling through."

Examining a sample of appraisals done this year, the company reported that nearly nine in 10 purchase loan appraisals provide a value opinion that supports the transaction price, with an estimated 27.6 percent valuing at contract price and 61.4 percent coming in above contract. Out of those homes appraised at values below contract price, only about 10 percent year-to-date have been significantly short, well within the market’s typical range, the company says.

The newest revised estimate from the Commerce Department shows economic growth expanded in the second quarter even more than previously thought, reflecting a sharp turnaround from the year's opening months. In its third estimate, the Bureau of Economic Analysis reported that gross domestic product increased at an annualized rate of 4.6 percent in the second quarter. The figure marks a step up from the bureau's last estimate of 4.2 percent growth. According to the BEA, the turnaround in the second quarter largely reflected positive contributions from consumer spending, exports, private inventory investment, and both residential and non-residential fixed investment.