From Mortgage Professional America:
The gap between the value homeowners put on their refinance mortgage applications and the value assessed by professional appraisers has narrowed for the third straight month.
The gap was 0.63% in July according to the Quicken Loans’ National Home Price Perceptions Index (HPPI). The analysis of 27 metros found that the gap between the two valuations was less than 1% in 20 metros, and only 2 saw a gap of larger than 1.5%.
“As expected, with mortgage rates at three-year lows and the refinance share of mortgage activity continuing to hover above 50%, homeowners are increasingly aware of the true value of their home, said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. “Prices continue to increase in most areas but the rapid growth of years past has moderated giving homeowners a better sense of their home’s market value.”