Associated Press, by Alex Veiga
LOS ANGELES (AP) – Latest signs of trouble in the US housing market: pick up home buy agreements before they are finalized.
About 6% of pending contracts to buy a home in May were cancelled from 7% in May, up from 5% last year, according to data from the National Association of Realtors. This is the third consecutive year in May, with pending home sales cancellations increasing annually.
Individual analysis of housing data by Redfin shows that 14.6% of all pending sales in May increased from 14% in May last year, with the highest cancellation rate in May dates back at least 2017.
This trend highlights how even shoppers in the home who managed to inked deals with sellers must withdraw due to unexpected costs, changes in credit, employment or financial situation, or low ratings.
“Stock market fluctuations, reduced consumer confidence, and broader economic and geopolitical uncertainty could lead to higher than usual cancellation rates in recent months,” said Lawrence Yun, chief economist at NAR.
The U.S. housing market remains in a poor sales back to 2022 as mortgage rates and home prices rise well beyond homeowners’ costs nationwide.
Sales of previously occupied US homes remained at their slowest pace since 2009, but U.S. home sales have risen 1.8% from the previous month and 1.1% since May last year, NAR said Thursday.
If you have signed a purchase agreement but have not finished the transaction, the home sale is listed as pending. There is usually a month or two delay between signing the contract and the sale is completed.
A pending snapshot by Redfin on US home sales for the four weeks ended June 22 shows a 2.3% decline from the previous year, the biggest decline in three months.
Mortgage buyer Fannie May economist this week revised its existing U.S. home sales outlook. This cites expectations that the average 30-year mortgage rate will close at 6.5% this year.
Fannie May currently expects existing US home sales to rise by 2% this year. The economists had previously predicted sales of 4.24 million units. Still, they predict that mortgage sales will increase by 9.5% in 2026 by easing 9.5% to 6.1%.
Original issue: June 27, 2025, 12:38pm EDT
