SEATTLE — Homebuyers canceled purchase contracts at a near-record rate in September, potentially signaling that higher mortgage rates are causing more buyers to reconsider their plans.
Nationwide, 14.5% of home purchase contracts fell through during the month, according to Redfin data cited by Yahoo Finance. That was the highest share on record outside the early months of the COVID-19 pandemic.
Deals can collapse because of inspection problems, financing difficulties or a buyer’s change of heart. Cancellations tend to rise when buyers have more homes to choose from and greater negotiating power, conditions present in much of the country, according to the report.
Jacksonville and Tampa, Fla., and Las Vegas, where market conditions favor buyers, had cancellation rates approaching 20%, the highest in the country.
By comparison, just 2.8% of contracts fell through in San Francisco, where conditions favor sellers, Yahoo Finance reported.
