Home Purchase Cancellations Above 15 Percent: Report

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.