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There is a surplus of second thoughts and cold feet in the housing market: Nearly 60,000 home purchase agreements were canceled in August, which is equal to 15.7% of homes that went under contract that month.

According to new data from Redfin (NASDAQ:RDFN), August’s percentage of canceled deals is up from 14.3% one year ago, and it is also the highest percentage since October 2022. The level of terminated transactions comes as mortgage rates remain above the 7% mark and the median home sale price rose 3% year-over-year to $420,846 in August, the largest annual increase since October 2022 and only 2.8% below the May 2022 record high of $432,780.

“Home prices will likely remain elevated for the foreseeable future,” said Redfin Economics Research Lead Chen Zhao. “The Federal Reserve still has more work to do in its battle against inflation, which means mortgage rates are unlikely to come down anytime soon. As long as rates remain high, homeowners will be reluctant to sell. And that lack of homes for sale will keep prices high because it means buyers are duking it out for a limited supply of houses.”

Zhao added that new listings rose by a scant 0.8% from July to August and dropped 14.4% from one year earlier.

“New listings have likely bottomed out,” Zhao said. “Most of the homeowners who feel handcuffed by high rates have already made the decision not to sell. That means many of today’s sellers are putting their homes on the market because they have to, in some cases due to divorce, family emergencies or return-to-office policies.”