Newz: Curiosity and AI, Construction Progress Reports
April 24, 2026
What’s in This Newsletter (In Order, Scroll Down)
- LIA AD: Construction Progress Reports: Don’t Get Hammered
- The Human Appraiser as a Macroeconomic Stabilizer By Kevin Hecht
- Spectacular Glass Cabin Located Mere Steps From the Beach Lists for Less Than $175K
- Appraisal Bias Training Now Required in Most States [2026]
- MY AD: Review of Appraiser’s Guide to the New URAR Class
- Curiosity in the Age of AI By Brent Owen
- AI in real estate. Chat GPT can’t smell the 10 cats in the house By Ryan Lundquist
- MBA: Mortgage applications increased 7.9 percent from one week earlier
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The Human Appraiser as a Macroeconomic Stabilizer
By Kevin Hecht
Excerpts:
The real estate industry is currently caught in a technological crossfire. Every week, a new headline promises that Automated Valuation Models (AVMs), artificial intelligence, and appraisal waivers are on the verge of making the human appraiser obsolete—a sentiment echoed frequently in industry publications like Working RE.
But as an economist and a practicing real estate appraiser, I look at this disruption through a different lens. When we rush to automate property valuation, we aren’t just replacing a vendor in a real estate transaction. We are tampering with the bedrock of the United States economy.
If we want to understand the true value of the human appraiser, we have to zoom out and look at the macroeconomics of housing.
The Economic Bedrock
Housing is not just another sector of the economy; it is the absolute foundation. According to recent data from the National Association of Home Builders, housing accounted for approximately 16 percent of the U.S. Gross Domestic Product at the end of 2025. That massive slice of the economic pie combines residential fixed investment with housing services.
The Macroeconomic Stabilizer
While algorithms are incredibly powerful tools for processing vast amounts of data in seconds, they require homogenous data to function accurately. As noted in recent performance analyses by real estate data firms like BatchData, AVMs struggle significantly to interpret context, assess unique property features, or quantify complex market dynamics in rural or luxury segments.
This is where the human element becomes irreplaceable.
An appraiser does not merely report data; an appraiser interprets context, exercises ethical judgment, and takes professional accountability for the valuation.
The Path Forward
The future of real estate appraisal does not lie in competing with machines on speed or volume. As the Appraisal Institute has recently emphasized, the path forward lies in elevating the uniquely human skills that AI cannot replicate.
Appraisers must transition from viewing themselves as form-fillers to positioning themselves as strategic problem-solvers and market analysts. We must clearly communicate to lenders, agents, and the public that an appraisal is not a speed bump to closing. It is a critical safeguard.
To read more, Click Here
My comments: I had never heard about this before. Another reason why human appraisers are needed. See the cat article by Ryan Lundquist at the end of this newsletter.
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Spectacular Glass Cabin Located Mere Steps From the Beach Lists for Less Than $175K
Excerpts: 0.59 acres
A spectacular glass-enclosed cabin only steps from the beach in Washington state has just splashed onto the market for $174,000—quickly soaring to the top of the week’s most popular homes list on Realtor.com®.
A shed on the parcel has also been converted to an off-grid bathroom, and an outdoor shower offers the opportunity to enjoy “the fresh coastal air in total privacy.”
Also found on the wooded retreat, which last traded hands for just $15,000 in 2020, are multiple outdoor living areas, a fire pit, and a deck that would be the perfect spot to grill out and enjoy the views. Nearby, community walking trails lead directly to the beach.
Ideal for stargazing, the one-bedroom seasonal structure with greenhouse-style sleeping quarters is in the Seaview Estates community in Copalis Beach, WA.
It is used as an income-generating property, and while there is no kitchen, the glass house was recently updated with a full electrical system, while water service is awaiting installation.
To see the listing with 35 photos and aerial view, Click Here
Note: scroll through photos to get to the subject.
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Appraisal Bias Training Now Required in Most States
Excerpts: To continue to ensure objectivity and fairness in the valuation process, The Appraisal Foundation (TAF) now requires bias training for all appraisers, effective January 1, 2026. Specific requirements may vary by state, so be sure to verify all licensing and continuing education requirements with your state’s regulatory board.
In this post, we’ll provide further clarity on this complicated topic and connect you with the courses you need to stay current, compliant, and well-informed about issues related to fair housing and valuation equity.
How to Combat Unconscious Bias
Unconscious bias refers to thoughts and behaviors that we are unaware of, how they influence our day-to-day decisions, and how we interact with others. As appraisers, it can affect how we interact with clients, homeowners, and peers. Unconscious bias in valuation may also unintentionally affect our appraisal process and how we form an opinion of value.
Educating yourself on these issues, avoiding subjective terminology in your appraisal reports, using reputable data sources, and taking care to always comply with USPAP and Fair Housing laws can help you avoid unconscious appraisal bias and prevent unintended discrimination within the process.
USPAP
In the ETHICS RULE of USPAP, bias is the “preference or inclination that precludes an appraiser’s impartiality, independence, or objectivity in an assignment.”
With the 2024 USPAP update, the ASB revised the language within the ETHICS RULE to remove language that prohibited an appraiser from using or relying on “unsupported conclusions” about protected characteristics. This update was because there were misconceptions outside the profession that appraisal bias was permitted if an appraiser could support those conclusions.
This update also included a new Nondiscrimination section which indicates that appraisers “must not act in a manner that violates or contributes to a violation of federal, state, or local anti-discrimination laws or regulations.” This section references explicitly the Fair Housing Act, the Equal Credit Opportunity Act, and the Civil Rights Act of 1866.
These updates do not change how an appraiser completes valuations, and of course, discrimination has always been prohibited. But again, these updates provide clarity to those outside the profession.
To read more, Click Here
My comments: Appraisers used to be biased in their appraisals in the “old days” of redlining where homes in specific areas were not eligible for loans. My house was redlined. Appraisers complied. That finally changed in the 1970s when appraisers were taught to not be biased.
Alleged appraiser bias recently returned with appraisers being targeted by homeowners did not get approved for their loans and appraisers were accused of bias.
I am in California and really dislike all the required bias CE I have been required to take.
We all have unconscious bias about many things. I found those discussions worthwhile.
Somehow I seldom see anything in the news about lender and real estate agent bias. Appraisers are an easy target.
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Review of Appraiser’s Guide to the New URAR Class
In the May 2025 issue of Appraisal Today
I took the Appraiser’s Guide to the New URAR class on April 10, 2025, the first offering I could find.
The 112 page PDF document “Appraiser’s Guide to the New URAR handout with 275 slides, provided only to attendees is a “must have” to learn about the New URAR. Mandated use is November 2, 2026.The instructor strongly recommended reading Appendix F-1 with examples of Report questions and explanation of answers. It is free – link at end of this article. F-1 is about 350 pages and shows most all entries that are required on the new reports.
What is best: in-person live, virtual (Zoom style), or classes on your computer. I strongly recommend in-person as there is a lot of information in the class. Do not take the class on a computer by yourself.
If you are taking the class at home, having two monitors is very useful so you could see the both the class slides and the documents used. The class size limit on the class I took was 49 students.Most classes are in person, with small class sizes. I would have preferredthis as questions are easier to answer and understand, similar to Zoom classes. In the class I took, questions were posted in the chat function.This is “the” class to take. I don’t think it has changed much from last year, as the GSEs specified the content. Instructors will have more information on which topics are best to emphasize now.
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Curiosity in the Age of AI
Artificial Intelligence (AI) will never be your most powerful tool for real estate appraisal.
By Brent Bowen
Excerpts: With all of the rapid development of AI, you may think that assertion is bold. Maybe you have just begun experimenting with it and are amazed. Maybe you are well beyond experimentation and have extensive AI workflows, or maybe even near-autonomous AI assistants! Regardless of where you fall on the AI learning curve—and as useful as it may be—it will never become your most powerful tool. That is because any appraiser’s most powerful tool isn’t something external.
Your most powerful tool is internal… curiosity. Cultivating curiosity is one of the most important and most impactful things we can strive for. Now, to be fair, I think that is true whether you are an appraiser, accountant, carpenter, or barista at the local coffee shop. Prerequisites for Curiosity
Curiosity deepens our engagement with the world around us. It requires something of us. You can’t be passively curious. To be curious, we must notice, and then we must inquire.Analytical CuriosityNow, we could spend some time applying this concept into several aspects of the valuation process, but I’m going to focus our attention on data analysis.
For analysis to be meaningful, it has to take into consideration the “shape” of our market. By that I don’t mean whether or not the market is “doing well”, “in equilibrium”, or a “buyer’s market”. As I’m using this term, the shape of the market is the collective interaction of how people are behaving relative to value-influencing features. The only way that we can begin to understand the shape of our market is to be curious:…
Cultivating Curiosity
So how can we cultivate curiosity? The best way to cultivate curiosity sounds simple: being present. This may sound silly, but in our current technological age, we are all conditioned to have a short, fragmented attention span. Being present—your mind and body occupying the same physical, mental, and emotional space at any given moment—is a challenge. Truly being present requires not just attention to your current time and space, but sustained attention.
To read more, Click Here
My comments: I have always been a curious person, always looking at something in new ways and looking for something new. That is one of the primary reasons I became an appraiser. Every property is different. I have always looked beyond the “data” to see what was really happening. I had worked in labs for 7 years before appraising. Labs were very boring to me in comparison. I always wanted to work in the field also after I worked on the 1970 census looking at many homes.
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AI in real estate
By Ryan Lundquist
Excerpts: I’ve said that for years, but here we are in a new era where so many consumers are using AI to understand value. So, it’s time to amend the statement. AI can’t smell if cats live there. I think we’re at an interesting place with AI and consumers, so I wanted to share some brief thoughtIt seemed fitting to have an AI image today (made with Grok).BUT AI SAYS
MY HOUSE IS WORTH…I’m starting to get more conversations with clients and consumers based on what AI says. It seems like, “But AI says…” is the new “But Zillow says…” What I find to be unique about AI though is the conversations are going beyond just the home value. With AI, for me, it’s been more about what one particular item might contribute to the value or the return-on-investment for various improvements.I’ve had a client share the value of an ADU based on what ChatGPT says, and I had a recent client provide an itemized list of what they spent on improvements over the past four years and what AI says each improvement contributes to value.To read more, Click Here
My comments: Very interesting topic. Many of my friends use ChatGPT and other AI to ask questions about many topics. I am sure many homeowners thinking about selling or just curious ask about property value topics.As an appraiser, read the full article for some ideas for how to respond.
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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.
My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2027.
Mortgage applications increased 7.9 percent from one week earlier
WASHINGTON, D.C. (April 22, 2026) — Mortgage applications increased 7.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 17, 2026.The Market Composite Index, a measure of mortgage loan application volume, increased 7.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 9 percent compared with the previous week. The Refinance Index increased 6 percent from the previous week and was 52 percent higher than the same week one year ago.
The seasonally adjusted Purchase Index increased 10 percent from one week earlier. The unadjusted Purchase Index increased 12 percent compared with the previous week and was 14 percent higher than the same week one year ago. “Mortgage rates declined last week as financial markets responded positively to the Middle East ceasefire and the lower trend in oil prices, with the 30-year fixed rate decreasing to 6.35 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Refinance application volume increased by 6 percent, while purchase application volume increased an even stronger 10 percent and was up 14 percent compared to last year’s pace. This increase was led by conventional purchase loans up 11 percent over the week. Despite the geopolitical uncertainty, housing demand is being supported by a still resilient job market, and homebuyers are experiencing a buyer’s market in most of the country given the higher levels of inventory relative to last year.
”The refinance share of mortgage activity decreased to 44.2 percent of total applications from 45.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.0 percent of total applications. The FHA share of total applications remained unchanged at 18.2 percent from the week prior. The VA share of total applications decreased to 15.0 percent from 15.7 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) decreased to 6.35 percent from 6.42 percent, with points decreasing to 0.61 from 0.62 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.43 percent from 6.48 percent, with points decreasing to 0.45 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.10 percent from 6.14 percent, with points decreasing to 0.71 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.75 percent from 5.85 percent, with points decreasing to 0.69 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.The average contract interest rate for 5/1 ARMs decreased to 5.48 percent from 5.63 percent, with points increasing to 0.89 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.
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Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone: 510-865-8041
Email: ann@appraisaltoday.com
Online: www.appraisaltoday.com
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