Biden’s economic struggles have now hit the housing market hard – even with Trump in charge. As mortgage rates hover near 7 percent, thousands of Americans are walking away from home purchases, signaling a housing market on shaky ground under the current administration.
At a Glance
- Over 41,000 US home-purchase agreements were canceled in January, representing 14.3% of homes under contract
- This is the highest cancellation rate for this time of year since at least 2017, up from 13.4% a year earlier
- Atlanta leads metro areas with a 19.8% cancellation rate, followed by Orlando (18.2%) and Las Vegas (17.9%)
- Housing inventory is at its highest since 2020 while pending home sales hit a record low
- The Federal Reserve has kept interest rates high, offering no relief for struggling homebuyers
Record Number of Home Buyers Backing Out
After four years of Biden’s total economic incompetence, American families are still abandoning their dreams of homeownership. In January alone, more than 41,000 home-purchase agreements fell through, representing a staggering 14.3% of all homes under contract. This marks the highest cancellation rate for January since tracking began in 2017, revealing a housing market in serious distress.
The troubling trend shows cancellations up from 13.4% compared to the same time last year, with certain regions suffering even more. Atlanta tops the list with nearly one in five deals (19.8%) falling apart, followed closely by Orlando (18.2%), Las Vegas (17.9%), and Houston (17.8%). These numbers paint a grim picture of Americans losing confidence in their financial futures under current policies.
The spike in cancellations comes as no surprise when examining the core economic factors at play. With the Federal Reserve keeping interest rates high and mortgage rates hovering around 7%, many families simply cannot afford to follow through on purchases. The median home-sale price increased by 4.1% in January, adding further strain to already stretched budgets of working-class Americans.
Real estate professionals on the ground are witnessing this troubling trend firsthand.
“I’m seeing more homebuyers back out of deals than usual, and I’m hearing the same from other agents and mortgage lenders in the area,” real estate agent Sam Brinton said.
Record Low Pending Home Sales
The National Association of Realtors’ Pending Home Sales Index fell by 4.6% in January, hitting an all-time low. This decline was particularly severe in the South, which experienced the largest regional drop. Meanwhile, the Federal Reserve has maintained their tight monetary policy, with no plans to lower interest rates until they see sufficient inflation progress – another failed promise from an administration that claimed inflation would be temporary.
“It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months,” NAR Chief Economist Lawrence Yun said.
Despite this attempt to blame weather patterns, the fundamental issues remain clear: economic instability, high interest rates, and soaring home prices have created a perfect storm for American families.
Trump has a lot of work to do – but he’s already started. Thankfully.
