Survey results show mounting tensions between buyers and sellers in a market shaped by high mortgage rates, steep prices, and economic uncertainty
Homebuyers in the United States walked away from nearly 60,000 purchase agreements in August, the highest cancellation rate for that month since records began in 2017, according to a new Redfin report.
The 15.1% cancellation rate, up from 14.3% a year earlier, reflects mounting tensions between buyers and sellers in a market shaped by high mortgage rates, steep prices, and growing economic uncertainty.
Buyers hold the cards as sellers struggle to adjust
Industry professionals pointed to a shift in negotiating power. “Buyers are skittish and selective due to high prices, high mortgage rates and economic uncertainty,” Redfin’s report stated.
“They’re asking sellers for all sorts of repairs, price reductions and other concessions because it’s expensive to buy a home and it’s a buyer’s market.”
The report noted there are roughly 500,000 more sellers than buyers, giving buyers significant leverage.
Many sellers, however, have been slow to adapt. “Some are having a hard time adjusting to the reality that it’s no longer a seller’s market because it seems like just yesterday that homes were getting dozens of offers and fetching tens of thousands of dollars over the asking price,” the report said.
Sellers who bought during the pandemic’s peak are often unwilling to negotiate, needing to hit certain price points to avoid losses.
“I still think we’re seeing some sellers not willing to accept the reality check that their realtors are giving them. This isn’t ’21. This isn’t ’22. You can’t just throw your house on the market and say, ‘Take it or leave it,’” Charlotte-based loan originator Rebecca Richardson told Mortgage Professional America last month.
Inspections and financing issues drive cancellations
Deals most commonly fell apart during the inspection period. In a September survey of 443 Redfin agents, 70.4% cited inspection or repair issues as the primary reason for cancellations.
“Buyers will use the inspection contingency to back out of a deal if the seller doesn’t concede to their repair requests, a better home comes up for sale, or they’re simply suffering from a case of buyer’s remorse,” the report said.
Financing problems were the second most common cause, with 27.8% of agents reporting deals fell through when buyers’ loans didn’t materialize. Other factors included buyers’ inability to sell their current home (21%), changes in financial situation (14.9%), or finding a more attractive property (12.9%).
“Unfortunately, we know Americans are in debt up to their eyeballs right now,” Mike Alberico, loan officers with Carolina Mortgage Advisors, said.
“I’ve probably done six cash-out refis, and have taken people off those 2% and 3% rates and sometimes put them on a 7% or 7.125% rate, but the overall monthly payment goes down by like $900 even if their mortgage goes up.”
Kurt Brandly of Greenside Capital says late-summer rate drops sparked a 42% spike in refis and renewed purchase activity—buyers are adjusting to the “new normal” and Gen Z is joining millennials in powering the next wave of homeownership.https://t.co/W4cDRPu1vF
— Mortgage Professional America Magazine (@MPAMagazineUS) September 26, 2025
Regional disparities and broader market implications
Florida metros led the nation in cancellation rates, with Atlanta, Jacksonville, Orlando, and Tampa all above 19%.
In contrast, Nassau County, NY, and several California metros saw the lowest rates, some under 5%. San Jose, while still low overall, saw the biggest year-over-year jump in cancellations.
Today’s buyers are empowered, cautious, and quick to walk away if a deal doesn’t meet their expectations. Sellers, meanwhile, must adjust to a market where compromise is no longer optional.
With cancellations at a record high, mortgage professionals must prepare clients for tougher negotiations and ensure deals are structured to withstand last-minute turbulence.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
