US Home Purchase Cancellations Edge Lower in April

Redfin reported that about 47,000 US home-sale agreements fell through in April, equal to 13.4% of homes that went under contract that month.

That share was down 0.1 percentage points from March and tied with January for the lowest level of contract cancellations since September 2024, although cancellations have varied by less than half a percentage point over the past year and a half.

Redfin said cancellations inched down as buyers and sellers gained a clearer sense of housing market conditions. More sellers are lowering prices or offering concessions, while buyers have grown more accustomed to elevated housing payments.

The average 30-year fixed mortgage rate declined for three straight weeks in April, giving some buyers more confidence in locking in a rate. Mortgage rates moved back up in May.

Still, home-purchase agreements are falling apart at a higher rate than in late 2020, 2021, and early 2022, when the market strongly favored sellers. Redfin attributed the higher cancellation rate to increased buyer options and broader economic uncertainty, including job-security concerns and the Iran war.