Homebuyers Retreat as Mortgage Rates Soar to 23-Year High

Homebuyers in the US are increasingly backing out of deals as mortgage rates reach a 23-year high. In September, approximately 16.3% of homes that went under contract had their agreements canceled, the highest rate in nearly a year. The surge in cancellations is attributed to higher mortgage rates, which have made home purchases less affordable for many buyers. Pandemic boomtowns, particularly in Florida, where home prices soared due to remote work, experienced the highest contract cancellation rates. Rising insurance premiums and disagreements over repairs have also contributed to the cancellations. Builders have seen cancellation rates rise as well, prompting them to offer more concessions to close deals.