Real estate firm Redfin reports 12% of homes that were under contract and waiting to close in July in the D.C. area were canceled, and recent changes in the market are the reason.
A rapid rise in mortgage rates means some buyers may no longer qualify for the mortgage they were approved for when they started looking for a home to buy several months ago. A 30-year fixed-rate mortgage averaged about 3.25% in January; it now averages 5.13% for the week ending Aug. 19.
A canceled contract is a disappointment for a buyer, but it can be terrible for a seller.
“It is very difficult for a seller to recapture momentum on a listing after it’s gone off the market, and then come back on the market,” said Corey Burr, at TTR Sotheby’s International’s The Burr Group in Chevy Chase, Maryland.
Click here to read the rest of the article written by Jeff Clabaugh over at WTOP
