60,000 buyers back out of deals despite falling mortgage rates

  • Record 60,000 home buyers backed out of deals in July
  • 16% of homes under contract were cancelled
  • Highest share of cancellations for any July on record
  • Tampa, Fort Lauderdale, and San Antonio had the highest share of cancelled deals
  • Lack of buyer interest and increased supply led to price cuts
  • 26% of homes listed on Zillow received a price cut in July
  • Political uncertainty is causing buyers to hold off on purchasing
  • Presidential elections historically slow home sales before but increase following

A record number of home buyers backed out of deals in July due to a combination of rising uncertainty and political climate. Redfin reports that about 16% of homes under contract were cancelled last month, the highest share for any July since 2017. Tampa, Fort Lauderdale, and San Antonio saw the most cancellations. Increased supply has led to price cuts on some listings, with 26% of Zillow-listed homes receiving a reduction in July. Despite falling mortgage rates, buyers are hesitant due to high home prices and election concerns.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the record number of home buyers backing out of deals in July due to falling mortgage rates and other factors such as high home prices and political uncertainty. It cites data from Redfin and includes expert opinions on the real estate market and presidential elections’ impact on home sales.
Noise Level: 6
Noise Justification: The article provides relevant information about home buyers backing out of deals and the reasons behind it, such as high home prices, political uncertainty, and falling mortgage rates. However, it also includes some speculation about the potential impact of the presidential election on the real estate market, which may not be directly related to the main topic.
Public Companies: Redfin (RDFN), Zillow (Z)
Private Companies: Re/Max
Key People: Nicole Stewart (real-estate agent), Amy Lessinger (president of Re/Max)

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Financial Relevance: Yes
Financial Markets Impacted: Real estate market and mortgage rates
Financial Rating Justification: The article discusses home buyers backing out of deals due to high home prices, political uncertainty, and falling mortgage rates, which impacts the real estate market and mortgage industry. It also mentions the impact on the presidential election on home sales.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: No market move size mentioned.
Sector: Real Estate
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.marketwatch.com