WEST PALM BEACH, Fla. — A new report released Monday by Redfin shows home sales in the U.S. are getting canceled at a high rate.
Numbers from the information released indicate 60,000 home purchase agreements fell apart nationally in June, that's roughly 15% of homes that went under contracts.
A local real estate agent said the trend is being felt here as well, and it's all due to rising interest rates.
Rising rates are causing contracts to fold because buyers who are financing are having to come up with more money.
"That previous payment per month may have been $2,000," Holly Meyer Lucas of Meyer Lucas Realty said. "With the rise in interest rates, now it's $2,500. So, those buyers who are under contract who are now having to pay $2,500 a month, they're having to cancel their contracts, they're having to renegotiate because they simply can't afford the new interest rate."
She said if you're in the market to buy a home, know exactly what you can afford and lock that interest rate immediately.
If you're a seller, make sure your buyer is well qualified to buy a home if interest rates continue to fluctuate. Both sides can help reduce the rise in canceled contracts.