Homebuyers are increasingly backing out of deals as mortgage rates stand at a 23-year high. Dara from Redfin found that around 53,000 home purchase agreements in the US were abandoned in September; 16.3% of all home sale contracts that month. This is the highest amount of canceled contracts since October 2022.
“Buyers are extra cautious right now,” Redfin premier agent Heather Kruayai observed. They want to make sure they’re getting a good deal given how much mortgage payments have gone up, and when they don’t feel like they’re getting a good deal, they’re backing out.”
The towns that were hit the hardest were those that experienced a home purchase boom during the pandemic due to the arrival of remote workers. Some areas in Florida experienced contract cancellation rates of up to 20%.