(Bloomberg) -- Failed US home-purchase deals jumped in July as buyers continued to back away from the market amid rising mortgage rates.
Roughly 63,000 home-purchase agreements were canceled in July, equal to about 16% of properties that went into contract that month, according to an analysis by Redfin Corp. That was up from 15% of deals that fell apart in June. A year earlier, when the housing market was running hot, it was about 12.5%.
The pandemic housing frenzy has cooled off amid the Federal Reserve's efforts to control inflation by increasing interest rates. Mortgage costs have also jumped, sidelining many potential buyers who can no longer afford properties after a sudden run-up in borrowing costs.
Six cities in Florida ranked among the top areas with the highest percentage of home cancellations in July. The state exploded in popularity during the pandemic, with many homebuyers from big cities relocating to the region in favor of a sunnier climate, friendlier tax environment and outdoor space. It saw some of the highest home price-growth in the nation.
Jacksonville, Florida, saw the highest percentage of home cancellations across the 93 US metropolitan areas Redfin analyzed. Roughly 800 home-purchase deals were called off in July, amounting to 29% of homes that went under contract in Jacksonville that month. That was followed by Las Vegas and Lakeland, Florida, at 27% and 26%, respectively.
Newark, New Jersey, had the lowest rate of deal cancellations, with about 2.7% of homes that went into contract that month falling through. New York City also ranked low, with about 7.1%.
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