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The Week Ahead: Variances on the Home Valuation Front

appraisalHistory has shown that homeowners typically value their homes at a higher price point than appraisers. Although the gap between the two opinions has gotten smaller, homeowners and appraisers are still searching for common ground. Now the question is will appraisers and homeowners find that common ground this week?

The most recent Home Price Perception Index from Quicken Loans showed that although owners are still overvaluing their homes, they are getting closer to appraised opinions. The index, which is based on Quicken Loans' application and appraisal data, showed that appraiser valuations were 1.95 percent lower than what homeowners estimated in April.

Since March, the gap between the two values has narrowed from when appraisals were 2.17 percent lower than homeowner expectations. The HPPI has experienced some slight fluctuations but has spent most of the last year around the -2 percent mark.

“The HPPI is in a healthy trend, nationally,” said Quicken Loans Chief Economist Bob Walters. “While everyone wants their appraisal’s to come back showing more equity than anticipated, like some homeowners in the West, the discrepancy we are seeing now won’t likely derail a mortgage transaction."

“The steady annual increase in home values shows sustainable growth and an improving economy,” Walters said. “We always look for gains to be similar to inflationary growth while avoiding the hikes that could lead to bubble fears. We are currently in that range, which should come as a more comforting sign to many homeowners.”

Here is the lineup for the week:

Monday, June 6, 2016


Federal Reserve Chair Janet Yellen delivers speech to the World Affairs Council of Philadelphia-12:30 P.M. EST

Federal Reserve Chair Janet Yellen participates in roundtable discussion at the West Philadelphia Skills Initiative- 2:00 P.M. EST

Tuesday, June 7, 2016

Quicken Loans' Home Price Perception Index


Wednesday, June 8, 2016

MBA Mortgage Applications- 7:00 A.M. EST

Thursday, May 12, 2016

Freddie Mac Primary Mortgage Market Survey

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