Source: New York Post —
The US housing market is in the midst of a significant pullback, with cooling conditions that have contributed to a spike in home sale cancellation rates, according to the top boss at real estate firm RedFin.
RedFin CEO Glenn Kelman noted housing demand plummeted because buyers were “absolutely freaked out” in May and June as the Federal Reserve’s sharp interest rate hikes prompted an increase in mortgage rates.
While rates have fallen slightly since jumping above 5.8% for a 30-year mortgage in June, economic instability has resulted in “a very high cancellation rate” for home sales “even for the deals that are under contract,” according to Kelman.
“It’s just hard to put deals together because the economy is so volatile,” Kelman said in an interview with MarketWatch published last Friday. “It’s a remarkably uncertain time.”
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