Article by Kimberly Dawn Neumann | Realtor.com
Featured expertise by Jason Gelios | Realtor
Owning a home is the American dream, but at the moment it’s more like homebuying cancel culture.
According to a 2022 survey by home warranty site Cinch Home Services of 1,000 Americans who have tried to buy or sell a home in the past year, more than half of buyers (51%) say they had a home purchase contract fall through in that time period.
Why is this happening—and what can you do to make sure that your own real estate offer doesn’t crash and burn? Here are some of the reasons deals are collapsing right now, and what to do to help prevent this from happening to you.
1. Rising interests rates cause financing to fall throughWhen buyers first start looking for a home, they often dutifully check into mortgages to figure out how much home they can afford. The problem? In a mere year’s time, interest rates have nearly doubled—from the low 3% range in 2021 to the 6% range today.
As a result, buyers might not be able to borrow as much now. In fact, the Cinch survey found that 42% of buyers who had to pull out of home deals did so because their mortgage did not come through.
Jason Gelios is a Husband and Father. After that, a Top Producing REALTOR®, Author of the books 'Think like a REALTOR®' and 'Beating The Force Of Average', Creator of The AskJasonGelios Real Estate Show and Expert Media Contributor to media outlets across the country.