Newz: Tariffs Effects on Home Building,
The Cupola and Its Cooling Comeback
October 17, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA AD: Unreasonable Subpoena Request
- California home built around giant boulder lists for $2 million
- What’s That Box on the Roof? The Cupola and Its Cooling Comeback
- Trump’s Tariffs on Lumber and Cabinetry Kick In, Hitting Homebuilding and Renovation
- The Appraiser’s Guide to Evaluating Home Value Before You Buy
- Mortgage applications decreased 1.8 percent from one week earlier
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What does “bias” in appraisal really mean?
Hal Humphreys
and Peter Christensen Video
Excerpts: What constitutes “bias” in appraisal isn’t always what you expect, according to an attorney who handles cases involving appraisers.
Now let’s zoom in on bias. This topic does NOT inspire feelings of neutrality in the appraisal community. That non-neutrality comes out (a bit explosively) in comments threads and appraiser forums, and sometimes even in the classroom. I’ve sat in on several of Peter Christensen’s in-person classes on bias and fair housing law, and invariably somebody in class pushes back. Sometimes the air gets pretty hot and hostile. But Peter always handles the pushback with calm and aplomb. He hears folks out, responds respectfully, and steers the conversation back to his thesis — that bias exists, and it can take forms that we don’t necessarily expect.
In a brief interview I did with him (see the video below), he tells a story about a case he handled, in which an appraiser’s report was found to exhibit bias to a homeowner whose political views he loathed. Peter tells this story in his class, and it always surprises people, because they’ve seen this divide in their own lives and can imagine something like this actually happening.
I thought I knew what bias looked like, but I’ve begun to realize that it can creep in when we’re least expecting it. —Hal Humphreys
To read more and watch the video, Click Here
My comment: Interesting analysis. Very good video. Worth watching the video and reading the text.
California home built around giant boulder lists for $2 million
Excerpts: The 3,460-square-foot home is at 3696 Alta Loma Drive in Jamul, a census-designated place in eastern San Diego County. It includes three bedrooms, two bathrooms and a pool. But its literal centerpiece is a boulder, which was on the property before the home was built. The gray rock sits beneath the home’s central tower and is clearly visible from the living room, kitchen and primary bedroom.
According to the website of Hubbell and Hubbell Architects, the firm that designed the house, the home’s original owners insisted on keeping the boulder, feeling that it was “sacred to the property.” One of the original owners, a rock climber, would scale the boulder to open and close the windows of the tower above.
To read more, Click Here
Comments from Joe Lynch: Straw bale insulation, temperature regulated by a giant boulder? Functional obsolescence from having to climb the boulder to open or close windows? Lol
My comment: Thanks to Joe for sending me this very interesting link!
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What’s That Box on the Roof? The Cupola and Its Cooling Comeback
By Jamie Owen
Excerpts:
How Did Cupolas Work?
The idea is simple, and it’s one we still use in modern architecture. Hot air rises — that’s basic physics. Back in the day, homes would heat up during the summer, and without modern HVAC systems, people had to get creative. Cupolas served as release valves, allowing trapped warm air to escape from the attic or upper levels. The hot air would escape through the cupola’s louvers or windows, and cooler air could be pulled in from lower levels or shaded parts of the house. Instant (and free) ventilation.
Why It Matters for Appraisers (and Homeowners)
As appraisers, we’re always on the lookout for functional features that add value and/or market appeal — and in some cases, cupolas can still contribute to energy efficiency or architectural appeal. More often than not, though, they’re a reminder of how past generations designed homes to work with nature rather than against it. Full disclosure, I’ve never made an adjustment in an appraisal report for a home having a cupola vs. one that does not. However, I have homes with significant energy-efficient features.
To read more, Click Here
My comments: Very interesting! I have seen homes with them, but never knew about the energy advantages.
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How to save money on business expenses.
Where do you spend your money?
In the January 2024 issue of Appraisal Today
Go through your bookkeeping records and credit cards, looking for expenses
that may not be necessary. Do this for your personal and business expenses.
Many credit card companies have downloadable data that is sortable by vendor or type of expense.
As I usually do when writing an article on this topic, I tried the ideas myself. I am now saving over $1,000 per month.
Look through recurring credit card charges
We often need to remember about monthly, quarterly and annual services that we use sparingly. Although they usually are nominal individually, they can add up.
These are typically for online services and business publications.
Review your credit card statements. Here are a few I found:
– A data service I use sparingly and downgraded my plan.
– Stopped a monthly computer checkup that I can do myself.
Here are a few ideas for what you can look for:
– MLS in areas you don’t work very often. Find another appraiser or real estate
agent who can help you.
– A less expensive public records data service.
– Downgrade your Internet service to a slower speed.
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Trump’s Tariffs on Lumber and Cabinetry Kick In, Hitting Homebuilding and Renovation
October 14, 2025
Source: NAR News
Excerpts: resident Donald Trump’s new tariffs on imported lumber and wooden fixtures have taken effect, potentially raising the cost of home construction and renovations.
The tariffs, aimed at boosting U.S. timber production, officially kicked in at 12:01 a.m. on Tuesday. They include a 10% tariff on all timber and lumber imports and a higher 25% duty on cabinets and furniture.
Those tariffs are set to jump higher on Jan. 1, rising to 30% for wooden furniture and 50% for kitchen cabinets and vanities. While the move is welcomed by domestic lumber producers, homebuilders say the new tariffs will raise their materials costs.
To read more, Click Here
My comments: What does this mean for you? This will affect Cost Approach and values. New home builders in your area may increase their prices. What’s happening in your area?
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The Appraiser’s Guide to Evaluating Home Value Before You Buy
Written for sellers but useful for appraisers to help explain what appraisers look at when speaking with home owner values.
By Tom Horn
Excerpts:
1. Gross Living Area (GLA): Size Matters — But Not How You Think
The size of a home is one of the most obvious features buyers consider. In appraisal terms, we call this the Gross Living Area, or GLA. It refers to the finished, heated, and cooled living space above ground level.
It might sound like “bigger is better,” but that’s not always the case. Appraisers often talk about the principle of regression and progression:
The largest home in a neighborhood tends to be pulled down in value by smaller, less expensive homes around it.
The smallest home can benefit from being surrounded by larger, higher-priced homes.
Other topics:
2. Floor Plan and Functionality: Flow Affects Value
3. Location and External Influences: You Can’t Move the Road
4. Unique Features: The Double-Edged Sword
5. Condition and Appeal: The Easy Fix That Pays Off
6. Lot Characteristics: The Land Beneath Matters Too
7. Age and Updates: Not All Renovations Are Equal
8. Neighborhood Stability and Appeal
9. Energy Efficiency and Modern Amenities
10. Questions to Ask Your Agent or Appraiser Before You Buy
To read more, Click Here
My comments: Good tips for how to answer seller questions and reminders about factors in valuation.
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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 in 2025.
Mortgage applications decreased 1.8 percent from one week earlier
WASHINGTON, D.C. (October 15, 2025) — Mortgage applications decreased 1.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 10, 2025.
The Market Composite Index, a measure of mortgage loan application volume, decreased 1.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2 percent compared with the previous week. The Refinance Index decreased 1 percent from the previous week and was 59 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 20 percent higher than the same week one year ago.
“Mortgage rate movements were mixed last week, with the 30-year fixed rate decreasing slightly to 6.42 percent. Mortgage applications were lower than the week before, as conventional and VA applications saw declines,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “FHA applications saw a stronger week, and FHA refinance applications in particular increased 12 percent as the FHA rate stayed more than 10 basis points lower than the conventional fixed rate. Purchase applications declined for the third consecutive week but remained 20 percent ahead of last year’s pace as improving inventory conditions in certain markets continue to maintain homebuyer interest.”
The refinance share of mortgage activity increased to 53.6 percent of total applications from 53.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 9.3 percent of total applications.
The FHA share of total applications increased to 20.5 percent from 18.5 percent the week prior. The VA share of total applications decreased to 14.9 percent from 16.3 percent the week prior. The USDA share of total applications remained unchanged at 0.4 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.42 percent from 6.43 percent, with points increasing to 0.61 from 0.60 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) decreased to 6.47 percent from 6.60 percent, with points increasing to 0.53 from 0.44 (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 remained unchanged at 6.19 percent, with points increasing to 0.76 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 5.77 percent, with points decreasing to 0.70 from 0.79 (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 increased to 5.63 percent from 5.49 percent, with points decreasing to 0.59 from 0.74 (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
