Appraisal modernization has been under the spotlight recently, as technology has made it possible to streamline and improve valuations. In 2023, we will likely see continued progress as the industry looks for better ways to make the process more efficient, accurate, and fair.
One trend we will see in 2023 is the continued use of alternative valuation methods. Traditional appraisals, which involve a physical property inspection, can be time-consuming and costly. As a result, more and more lenders are turning to time and cost-effective methods, such as desktop appraisals and automated valuation models (AVMs), which use MLS data to estimate the value of a property. These methods can be more efficient and inexpensive than traditional appraisals, becoming increasingly accurate as the data and algorithms used to generate them improve.
Housing market:
- High mortgage rates could impact the housing market by making it more expensive for borrowers to take out a mortgage. This could lead to slower demand for housing and potentially lower home prices.
- Affordability remains a challenge for many people, especially in markets with high housing prices and low inventory. Hence leading to slower price appreciation or modest market price declines.
- Inflation is another factor that could impact the housing market in 2023. If inflation remains high, it could lead to higher mortgage rates, making it more expensive for borrowers to take out a mortgage and potentially dampening demand for housing.
Mortgage rates:
- Mortgage rates are currently higher than in the past, with the 30-year fixed mortgage rate currently sitting at around 6.63%. This could make it more expensive for borrowers to take out a mortgage and potentially impact the housing demand.
- The Fed has indicated that it plans to keep interest rates low for the foreseeable future to support the economy’s recovery from the COVID-19 pandemic. This could potentially lead to lower mortgage rates in the coming year.
- Factors such as inflation and global economic conditions could also impact mortgage rates in 2023. If inflation rises or global economic conditions deteriorate, it could lead to higher mortgage rates.
It’s important to note that these are just potential predictions, and it’s difficult to know what will happen in the housing market and mortgage industry in 2023, as the industry impact is driven by inflation and federal rates. However, by keeping a close eye on these trends and factors, it may be possible to get a sense of what we can expect in the coming year. get a sense of what we can expect in the coming year.
