Mortgage rates rise one percentage point before the appraisal’s effective date. How should this enter the analysis?
Correct Answer
D) As current demand-side evidence weighed against still-lagging comparables
Treat the rate change as relevant demand-side information as of the effective date, alongside verified listings, contracts and sales. Its actual market-price effect is empirical and may lag or be offset by other forces; a one-percentage-point rate increase does not imply a 1% property-value decrease.
Why This Is the Correct Answer
Treat the rate change as relevant demand-side information as of the effective date, alongside verified listings, contracts and sales. Its actual market-price effect is empirical and may lag or be offset by other forces; a one-percentage-point rate increase does not imply a 1% property-value decrease.
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