Prospective home buyers in the U.S. set an all-time high record of purchase contract cancellations in July. Redfin reported the total number of cancellations across America at 58,000. That's up nearly 1% from last year and the highest monthly cancellation rate since tracking began in 2017.
The outlet blamed high purchase prices, unfavorable rates charged by mortgage lenders and general economic uncertainties as the primary reasons so many buyers backed out of their deals.
Some other factors are better deals that came up before closing, and for those using FHA loans, the required structural integrity requirements and potential repairs may prove to be too much of a headache.
Sellers in San Antonio, Texas, took the biggest hit of any metropolitan area by percentage, with 22.7% of home contracts canceled in July, or 730 deals. Fort Lauderdale, Florida, was next at 21.3%.
Markets where buyers were least likely to back out were Nassau County, New York, with a 5.1% dropout rate, and Montgomery County, Pennsylvania, at 8.2%.
Mortgage buyer Freddie Mac reported this week that the average 30-year fixed-rate home loan options remained steady. Rates have come down slightly through the summer, and the number of loan applications for purchases has been higher than in 2024. But not by much.
Home prices and resulting mortgage payments may be the top factor affecting buyers, even after they've agreed to a contract. The latest report from the National Association of Realtors put the average listing price of a previously occupied home at $429,400.
Better Mortgage reported that the monthly principal and interest payment for an average purchase price home using a 30-year fixed mortgage has reached $2,715, or $3,552 for a 15-year loan.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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