As mortgage rates go up and the housing market softens, more people are canceling home purchases.
In August, over 15 percent of home purchase agreements were canceled—the second month in a row, according to real estate brokerage Redfin.
Compared to a year ago, cancellations are up 3 percent.
Homebuyers in the Sun Belt, such as Phoenix, Tampa, and Las Vegas—which became more popular during the pandemic—are backing out at a higher rate than anywhere else.
On the other hand, people are least likely to back out in pricey coastal cities like New York and San Francisco. They’re making a comeback after the pandemic.