US Homebuyers Are Backing Out at Record Pace

Home-purchase contracts in the US were canceled at a record rate, with about 58,000 agreements falling through last month. That’s equivalent to 15.3% of homes that went under contract and the highest cancellation rate for a July in data going back to 2017.

It’s not just that the housing market’s expensive, with elevated mortgage rates and home prices that have soared 50% since early 2020. Buyers are also pulling back more than usual because of uncertainty over the wavering US economy, as inflation begins to rise again and the labor market slows. Plus, with more listings to choose from in many parts of the country, there’s less urgency.