Record Homebuyers Cancel Contracts Amid Us Economic Uncertainty
Homebuyers in the US canceled purchase contracts at a record pace in January, with about 14.3% of sales agreements falling through, up from 13.4% a year earlier and the highest level for the month in data going back to 2017. The high rate of cancellations casts a pall over prospects for the key spring sales season, which is just getting underway, as house hunters face an ever-growing list of pressures, including high mortgage rates and prices. Economic and political uncertainty, such as tariffs, layoffs, and federal policy changes, are among the factors contributing to an air of instability.
- The surge in homebuyer cancellations may signal a broader shift in consumer behavior, with potential implications for the US housing market and the overall economy.
- How will policymakers address the root causes of economic uncertainty, which appear to be affecting not just homebuyers but also broader segments of the population?