🔎 Homebuyers Are Canceling Deals at a Record Rate - Here’s Why!

Good Afternoon! It's October, and while haunted houses are meant to be scary, but the real fright this month is happening in the housing market! Homebuyers are backing out at record levels. Learn the reasons behind rising cancellations - and tactics to keep deals alive.

Today's read: 313 words. 1 minute 10 seconds. Let's go!

Today's Mortgage Rates:

*These rates are based off the national average. Provided by MBS. Your actual rate could vary.

Mortgage Rate Outlook: Next week is supposed to bring inflation data, but if the government shutdown continues (as looks likely) we won't get that data. Rates are not likely to make any big moves in the next couple of weeks, but could move more noticeably when the budget impasse is finally broken. Today's rate sheets are likely to match the week's best though.

🔎 Homebuyers Are Canceling Deals at a Record Rate - Here’s Why!

In August, 56,000 home purchase agreements were canceled across the country, according to Redfin. That’s equal to 15.1% of homes that went under contract that month, and marks the highest percentage of cancellations on record in any August dating back to 2017.

Key Takeaways:

• Cancellations Hit Record High: 1 in 6 contracts fell through, up from 14.3% last year — the highest August rate since 2017.

• Top Reason:Inspections & Repairs: 70% of canceled deals stemmed from inspection issues. Financing (28%) and difficulty selling a current home (21%) followed.

• Buyer Power Rising: With roughly 500,000 more sellers than buyers, shoppers are getting pickier, asking for more concessions — and walking if they don’t get them.

• Price Adjustments:1 in 6 homes sold below list price, the largest August discount since 2019.

My Take:

Buyers are getting spooked and sellers are still adjusting to a slower, more negotiable market. Deals are falling apart over repairs, appraisals, and expectations. The best defense? Preparation and communication.

For Sellers: Do a pre-inspection, price realistically, and stay flexible.

For Buyers: Get fully pre-approved, know your limits, and don’t overreact to minor issues. Have your loan reviewed by an underwriter! (I CAN HELP)

For Agents & Lenders:Keep everyone calm and informed - emotions kill more deals than data.

This cooling period isn’t all bad, it’s helping reset the market for more balanced, sustainable transactions.

The Headlines:

🏦 What a government shutdown means for VA loans. (VeteransUnited)

🎥 HousingWire’s Logan Mohtashami: Whenever mortgage rates head near 6%, housing data improves. (CNBC)

🏡 Investors are making up the highest share of homebuyers in 5 years. (MSN)

☀️ You’re all caught up. Have a great weekend!

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