The number of US home-purchase deals that fell through jumped in July as buyers continued to back away from the market amid rising mortgage rates.
Roughly 63,000 home-purchase agreements were cancelled in July, equal to about 16% of properties that went into contract that month, according to an analysis by Redfin Corp. That was up from 15% of deals that fell apart in June. A year earlier, when the housing market was running hot, it was about 12.5%.
The pandemic housing frenzy has cooled off amid the Federal Reserve’s efforts to control inflation by increasing interest rates. Mortgage costs have also jumped, sidelining many potential buyers who can no longer afford properties after a sudden run-up in borrowing costs.
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