Homebuyers are getting cold feet
Buyers are backing out of home deals at a record rate as prices march higher
Would-be homebuyers are getting a case of cold feet as they confront still elevated mortgage rates and record-high housing prices.
New findings published by Redfin show that a growing number of buyers are backing out of deals to buy a house at the last minute because buying a home is more expensive than ever. About 56,000 home purchases were canceled in June – about 15% of homes that went under contract – the highest percentage of any June on record.
The median home sale price rose 4% in June to $442,525, the highest level on record. At the same time, the average 30-year mortgage rate was about 6.92%, more than double the pandemic-era lows.
“Buyers are getting more and more selective,” said Julie Zubiate, a Redfin real estate agent near San Francisco. “They’re backing out due to minor issues because the monthly costs associated with buying a home today are just too high to rationalize not getting everything on their must-have list.”