Real Estate Analysis and Valuation Insights

Mortgage Market Shifts: What Florida Appraisers Should Expect in Q4 2025

By CSCC Appraisal Services, Inc | Residential Real Estate Appraisal Insights

As we head into the final quarter of 2025, residential real estate markets across Florida are facing a shift—one that appraisers need to track closely. Mortgage rates are easing, pending home sales are rebounding, and Federal Reserve policymakers are signaling potential rate cuts which are more than welcome by the market (prayerfully this will come to fruition).

For appraisers working in North, Northeast, and North-Central Florida, specifically those that the majority of the business they conduct is mortgage driven, these changes could bring a noticeable impact on residential appraisal volume and the alternative valuation space as well.

Key Market Updates

Mortgage Rates at 10-Month Lows

• The national average 30-year fixed mortgage is hovering around 6.5%, the lowest since October 2024.
• Some Florida-based lenders are offering even more competitive terms—Seacoast Bank, for example, recently quoted 6.0% (APR ~6.2%) on a 30-year fixed. It’s hard to believe that 6.0% is now considered a competitive rate given where we were roughly 3 years ago.

Appraiser Takeaway: As rates decline, affordability improves, allowing more market participants to enter. Expect increased buyer activity in submarkets with moderate pricing (Gainesville, Ocala, Jacksonville suburbs). More purchase activity typically translates into more appraisal orders even with waivers and alternative valuation methods.

Pending Home Sales Rise

• According to Redfin, pending home sales nationally rose ~1.6% in August, year over year. National Association of Realtors will release pending home sales data September 29^th, stay tuned for additional insights.
• Florida metros, particularly those with more attainable price points, are expected to lead the rebound.

Appraiser Takeaway: Pending sales often are seen as a foreshadow for appraisal demand. A modest rise in order volume is likely in late Q3 and into Q4 even with seasonal impacts expected in the last quarter.

Fed Signals Rate Cuts

• The Federal Reserve is widely expected to cut rates in September, with the possibility of more cuts before year-end. The Federal Reserve is widely expected to implement a 25-basis-point rate cut at its September 16^th 2025 meeting, bringing the target range for the federal funds rate down to 4.00%-4.25%
• While fixed mortgage rates move more closely with 10-year Treasury yields, market sentiment is shifting toward lower borrowing costs overall.

Appraiser Takeaway: Refinances may re-enter the picture, especially for homeowners with rates above 7%, those that dated the rate and are married to the home. This could add to your valuation workload heading into Q4.

Supply & Inventory Dynamics in Florida

• Housing inventory is building in Florida, with North-Central metros like Gainesville and Alachua County seeing more new listings. Currently year over year Alachua County, FL has see approximately 2.5% more listings come to market.
• Builders are offering buy-downs and concessions, showing eagerness to close deals before year-end.

Appraiser Takeaway: More listings mean more comps, but also potential downward price pressure if sellers must adjust expectations due to more supply. Appraisers should monitor competitive pricing trends closely to ensure accurate market trends are reported whether they be positive, negative or neutral.

Implications for Residential Appraisers

What This Means for Your Business

For appraisers serving North, Northeast, and North-Central Florida, the upcoming quarter looks cautiously optimistic:

• Expect a modest pickup in orders from both purchases and selective refinances.
• Monitor pricing volatility, especially in mid-tier homes where concessions are growing.
• Stay nimble on turn times, as lenders push to close deals faster while rates remain attractive.

The bottom line: Q4 2025 could bring more appraisal opportunities than we’ve seen in the past year, but success will hinge on staying sharp with market data and available comps.

About CSCC Appraisal Services, Inc.

At CSCC Appraisal Services, Inc, we provide timely, accurate, and market-informed residential appraisals across North Florida. With deep expertise in the North, Northeast, and North-Central regions, we help lenders, agents, and homeowners navigate shifting market conditions with confidence. We also offer valuation services for premarket listing, estate, litigation, and divorce services.

Contact us today to learn how our appraisal services can support your business in today’s evolving market.

This blog post is for informational purposes only and not financial advice. Please consult a licensed professional for personal guidance.

Introduction: The Industry’s Biggest Form Change in Decades

After decades of working with static appraisal forms like the 1004, 2055, and 1073, the residential appraisal profession is preparing for one of its most significant transitions in recent history. Beginning this fall, appraisers, lenders, and clients will see the first wave of the Uniform Appraisal Dataset (UAD) 3.6 rollout under the Uniform Mortgage Data Program (UMDP).

This isn’t just a form redesign — it’s a fundamental modernization or change of how residential valuations are reported, reviewed, and understood.

Why UAD 3.6? Moving From Forms to Features

The current appraisal process has long relied on rigid forms that often force appraisers to “fit” unique properties into outdated templates or standard forms. UAD 3.6 seeks to fix this by delivering a dynamic Uniform Residential Appraisal Report (URAR) that adapts to each assignment.

Key changes include:

• Dynamic reporting: Sections will appear or hide depending on property type and features (e.g., ADUs, condos, manufactured housing) depending on what is selected by the appraiser.
• Structured data vs. narratives: Less reliance on lengthy comment boxes and more standardized inputs. Narrative will still be necessary; the changes don’t eliminate the need for supporting narrative, however it changes the format and where the narrative shows up in the report.
• Terminology alignment: Terms like “above-grade finished area” now follow ANSI Z765-2021 measurement standards, improving consistency. Additionally the declarations are embedded in the new form.

Timeline to Adoption: What Happens When

?? Here’s the official UAD 3.6 rollout schedule:

• Limited Production: Sept 8, 2025 – Jan 25, 2026
  Select lenders begin ordering and accepting appraisals in the new format.
• Broad Production: Jan 26, 2026 – Nov 1, 2026
  All lenders may use UAD 3.6, though UAD 2.6 remains accepted during this overlap.
• Mandatory Adoption: Nov 2, 2026
  All new GSE appraisal reports must be completed using UAD 3.6.
• Legacy Retirement: May 3, 2027
  UAD 2.6 officially sunsets; all revisions or updates must be in UAD 3.6.

Think of this as a countdown clock: in less than a year, early adoption begins — and in just over two years, legacy forms will disappear altogether.

Practical Changes for Appraisers

Here’s how this shift will affect daily work:

• Dynamic Sections: Instead of every form looking identical, reports will expand or contract based on property complexity.
• New Data Fields: More granular inputs for condition, quality, ADUs, GLA, and site details. This will materially change the way residential appraisers perform property observations and the time spent at the subject property.

For appraisers, this means adjusting workflow, updating software, and learning new terminology — and embracing new technologies (hardware and software)

Supporting Technology & Industry Shifts

The UAD 3.6 transition is part of a broader “modernization” under the Uniform Mortgage Data Program (UMDP). In June 2025, MISMO released its Appraisal Procurement Dataset Specification, which standardizes how appraisals are ordered in alignment with the new forms.

At the same time, appraisers are seeing parallel shifts:

• AI & AVMs (Automated Valuation Models): Gaining traction in certain use cases, though not a replacement for human analysis, or appraisers.
• Data Transparency: Structured reporting should improve “fairness” and remove possible bias, improve consistency, and auditability.
• Regulatory Alignment: With ANSI measurements embedded, industry expectations are becoming clearer and more uniform with declarations included in the new form.

Together, these changes signal a future where appraisers will have to balance deep professional judgment with standardized, technology-supported reporting. For years less emphasis was placed on the appraiser’s observation of the subject property, leveraging appraisers to place even more emphasis on the analysis this change seems to place more emphasis on data collection than the analysis.

Appraiser Action Checklist

Here’s how to get ready now:

? Review UAD 3.6 reference materials from Fannie Mae and Freddie Mac.
? Take continuing education (CE) courses on UAD 3.6 and ANSI Z765-2021.
? Make sure appraisal software is updated to handle dynamic URAR formats.
? Begin practicing with UAD 3.6 sample forms before they’re required.
? Communicate with clients and lenders about upcoming expectations and timelines.

Conclusion: Be Ready, Be Ahead

UAD 3.6 is more than a compliance update — it’s a transformation in how we communicate value. Appraisers who adapt early will not only stay ahead of regulatory requirements but also build trust with lenders and clients by showing preparedness, efficiency, and professionalism.

This is an opportunity to embrace the change, sharpen our reporting, and reaffirm the indispensable role of appraisers in the housing market. Ultimately if the residential appraiser will be performing assignments for mortgage lending its not if you will adapt but when.