Home Buyers Back Out of Deals as Mortgage Rates Surge, Slamming Housing Market

Homebuyers are backing out of deals at the highest rate in a year as mortgage rates surge, slamming the housing market.

16.6% of deals were cancelled in September according to Redfin, the highest rate since October 2021.

Buyers are cautious and only moving forward if they feel they're getting a good deal amid high mortgage rates and prices.

Sellers may be more motivated to close as they fear home prices could fall if rates stay high.

Cities in Florida saw the highest cancellation rates in September, with Atlanta having the most at 24.4% of pending deals falling through.