Home buyers are backing out of deals at the highest rate in a year as surging mortgage rates slam the housing market

  • People are canceling home deals at the highest rate in a year as high mortgage rates give buyers cold feet.
  • Deal cancellations notched 16.6% in September, according to Redfin, a new high since October last year.
  • The housing market is tight, but Redfin said buyers “hold all the cards.”

A cocktail of high mortgage rates and high home prices has driven potential buyers to back out of deals at the highest rate in a year.

Monthly pending home sales that fell out of a contract in September notched 16.6%, the highest since October 2022 when mortgage rates surpassed 7%.

“Buyers are extra cautious right now. 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,” said Heather Kruayai, a Redfin Premier Agent in Jacksonville, Florida.

Aruni Soni | Yahoo Finance

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