While there’s more demand for their services today, real estate appraisers are “cautiously optimistic” that demand will remain strong for the next year or two, according to a survey by the Appraisal Institute, the nation’s largest association of appraisers.
The survey found 95 percent of residential appraisers said there is more demand for their services than there was a year ago. But only 32 percent expect there will be more demand for their services in a year or two than there is now.
Like mortgage originators, appraisers are likely to see a decline in business as rising mortgage rates put the brakes on the refinancing boom.
In a June 20 forecast, the Mortgage Bankers Association predicted that mortgage originations will plummet by 30.6 percent from this year to next, to $1.09 trillion. While the MBA expects refinancings to drop by 60.1 percent, to $388 billion, the good news for Realtors is that purchase loan originations are projected to rise by 17.2 percent, to $703 billion.