Now, 'too low' appraisals may be hurting housing sector

Home appraisals – the source of considerable mortgage-related stress during the acute phase of the housing crisis – could create a formidable speed bump as the housing sector starts to recover.

Low appraisals – where the home's appraised value is less than the sales price – are causing deals to fall through, Bloomberg News reported Wednesday, as banks and other lenders shy from issuing mortgages for homes that don't have appraisals that approximate their sales price.