Home purchase cancellations surge amid high mortgage rates

Posted on July 2, 2025   |  

The U.S. housing market saw a rise in canceled home purchase agreements in May 2025, with 6% of pending contracts falling through.

Although this represents a drop from 7% in April, it's higher than the 5% in May 2024, marking the third consecutive year-over-year increase.

The Associated Press links the cancellations to growing market instability.

High mortgage rates and expensive home prices continue to make buying difficult, keeping home resales at their slowest pace since 2009.

Still, pending home sales grew 1.8% month-over-month and were up 1.1% compared to last year.