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record number of homebuyers are backing out of deals due to challenging market conditions and consumer anxiety. In July, 15.3% of all pending home sales nationally fell through, the highest share for any July since at least 2017. This is a modest increase from last year but reflects a trend of buyers becoming more cautious in their purchasing decisions.

    The cancellation rate was particularly high in areas with higher interest rates and more expensive homes. Angela Richter, a RE/MAX sales agent, noted that working-class buyers are far more sensitive to today's record prices and elevated mortgage rates, making them more likely to cancel deals. Houses priced under $350,000 are taking longer to sell than those above this threshold.

    The cancellations also reflect the increasing complexity of homebuying in today's market. Mortgage rates have been on a downward trajectory, but buyers are still worried about the economy and their financial security. This has led to more buyers second-guessing their decisions, especially during the inspection period when issues can arise.

    Jeremy Hallowanger, a broker at Oakdale-based Hallel Properties, noted that buyers now have more negotiating power due to increased inventory in some areas. However, this also means they are more likely to cancel deals if they find a better option or encounter financial issues.

    Tim Collelo, a broker in Cloquet, cited financing and title issues as common reasons for cancellations. While sellers can also cancel listings before receiving an offer, David Arbit, director of research for Minnesota Realtors, noted that this is not driving the recent increase in house listings.

    The cancellation rate is likely to rise during times when contingent offers are more common, such as during periods of low mortgage rates. However, even with today's higher interest rates, there are still plenty of buyers waiting in the wings.