3,760
 

Sep 26 - Home Purchase Cancellations Are Above 15% for Second Straight Month



ADVERTISEMENT
 
topics gone triple plat - Number 1 spot 3X PLAT




section  x1   |  0 bx goons and 1 bystanders Share this on Twitter       Share this on Facebook

section news
  
 2 months ago '17        #1
1942 page views
45 comments


Mozzie  topics gone triple plat - Number 1 spot x13
avatar
Props total: 36133 36 K  Slaps total: 3598 3 K
Sep 26 - Home Purchase Cancellations Are Above 15% for Second Straight Month
 

 
image

Amid higher interest rates and a softening housing market, home buyers are continuing to back out of purchase contracts at an elevated rate.

About 64,000 home-purchase agreements were canceled in August, according to a new report from Redfin. That's equal to 15.2% of home contracts initiated during the month and similar to the 15.5% canceled in July. A year ago, the share was 12.1%.

If you're considering joining the ranks of those who walk away from a deal in progress, it's important to know whether it will cost you to do so. Or, if you haven't yet signed a contract but are nearing that point, it's worth determining if you can cancel at some point in a way that doesn't result in forfeited money.

Your deposit may be at stake

Typically, buyers provide what's called an earnest money or "good faith" deposit when an offer is made on a home, although the specifics vary from state to state. The amount is usually 1% to 5% of the purchase price but can run as high as 10% depending on the local market.

The deposit is kept in an escrow account and goes toward your down payment or other closing costs when you finalize the purchase at settlement.

If the seller accepts your offer and you sign a purchase agreement ó whether weeks or months before settlement ó you can risk losing that deposit if you try to get out of the contract without meeting the terms.

Contingencies can help protect buyers

Given the financial risks of a broken contract, it makes sense to ensure the final purchase is contingent upon certain aspects of buying a house. Common contingencies relate to home inspection, appraisal and financing.


For example, if the inspection were to reveal problems with the house that are unacceptable to you, a home inspection contingency generally would mean you can walk away and get your deposit back. Or, if the appraisal were to fall short of the agreed-upon sale price or you cannot secure a mortgage at a rate or terms specified in the contract, you could back out without losing your money.

Be aware, though, that the process and conditions for being able to recoup your deposit differs from state to state, said Erin Sykes, chief economist for Nest Seekers International, a real estate brokerage.

For buyers, the softening market means entering into a contract with contingencies is more likely than it was just a few months ago.

"Buyers are putting contingencies back in [purchase agreements] Ö and not giving it all away to sellers like they did," said Stephen Rinaldi, president and founder of Rinaldi Group, a mortgage broker.

There also can be affordability issues causing buyers to walk away, especially in new construction, said Al Bingham, a mortgage loan officer with Momentum Loans in Sandy, Utah.

Basically, with persisting supply chain issues affecting construction, new houses are taking longer to complete. This means that the current interest rate available to a buyer ahead of settlement may be higher now than it was before construction started.

Buyers "are willing to walk away even if they can qualify because the house payments have gone up," Bingham said. "They just cannot afford it."

After two years of surging home prices, rising interest rates have hit the brakes on a red-hot housing market. The average fixed rate on a 30-year mortgage was 6.7% as of Friday, up from about 3.3% in early January, according to Mortgage News Daily.

The difference a higher interest rate makes can be stark.

For example, on a $300,000 mortgage at 6.7% over 30 years, monthly payments for principal and interest only would be $1,935. That same loan at 3.3% would result in a payment of $1,313 (a savings of $622). Those amounts do not include other costs that often are wrapped into mortgage payments, including homeowners insurance, property taxes or private mortgage insurance.

"The market shifted really fast," Rinaldi said. "It went from people offering $40,000 above asking price, waiving inspections, promising their first-born Ö to not so much, because rates increased so fast."


visit this link https://www.cnbc.com/2022 .. re-you-do.html
+3   



best
worst
45 comments
 

 2 months ago '22        #2
Booda Sack  topics gone triple plat - Number 1 spot x5
Props total: 18205 18 K  Slaps total: 11804 11 K
I bet the whole economy will crash after midterms
+14   

 2 months ago '22        #3
Bxlife 
Props total: 80 80  Slaps total: 121 121
It's about to be buying season...Hope you all are holding cash.
+22   

 2 months ago '22        #4
Bxlife 
Props total: 80 80  Slaps total: 121 121
 Booda Sack said
I bet the whole economy will crash after midterms
A planned destruction of America.
+8   

 2 months ago '20        #5
Xiox  topics gone triple plat - Number 1 spot x1
Props total: 75518 75 K  Slaps total: 13773 13 K
Are investors borrowing money or do they have cash in the bank to flip these homes ?
+1   

 2 months ago '21        #6
The jinx  topics gone triple plat - Number 1 spot x8
Props total: 16580 16 K  Slaps total: 7892 7 K
Bidens America and a certain parties agenda.... you will own nothing and you will like it
+7   

 2 months ago '05        #7
Tonero 
Props total: 13691 13 K  Slaps total: 3276 3 K
My boys mortgage just went up almost a G , year 1 of home ownership....damn
+18   

 2 months ago '06        #8
philly337  topics gone triple plat - Number 1 spot x1
Props total: 66140 66 K  Slaps total: 18261 18 K
This bullsh*t always happens when I'm about to makes some moves. Recession hit in 08 when I was about to do some things. Now I'm sitting nice and really about to go to a whole other level and this sh*t is happening

I knew it was coming but still some bullsh*t
+13   

 2 months ago '06        #9
burtbeezy 
Props total: 1887 1 K  Slaps total: 237 237
 The jinx said
Bidens America and a certain parties agenda.... you will own nothing and you will like it
This was happening under Trump the house rate and mortgage rate where going up under his presidential term, but just blame the person you don't like , this why sh*t like this happens we always blaming the wrong people for sh*t and not th people who really caused things
+4   

 2 months ago '07        #10
pete jr 
Props total: 12408 12 K  Slaps total: 1329 1 K
 Tonero said
My boys mortgage just went up almost a G , year 1 of home ownership....damn
How? ARM? Sound like he got a shady a*s loan. Anybody who bout in 2020-2021 is winning with them low a*s interest rates
+21   

 2 months ago '17        #11
LostTenets  topics gone triple plat - Number 1 spot x52
Props total: 118539 118 K  Slaps total: 33372 33 K
 Tonero said
My boys mortgage just went up almost a G , year 1 of home ownership....damn
How did it go up, did he have an ARM
+5   

 2 months ago '04        #12
SCENE 
Props total: 3933 3 K  Slaps total: 351 351
 Tonero said
My boys mortgage just went up almost a G , 1 year of home ownership....damn


Last edited by SCENE; 09-26-2022 at 05:34 PM..
+4   

 2 months ago '05        #13
Tonero 
Props total: 13691 13 K  Slaps total: 3276 3 K
 pete jr said
How? ARM? Sound like he got a shady a*s loan. Anybody who bout in 2020-2021 is winning with them low a*s interest rates
 LostTenets said
How did it go up, did he have an ARM
Variable interest rates , he bought his crib around ~$500k

 2 months ago '04        #14
killadre  topics gone triple plat - Number 1 spot x2
Props total: 62396 62 K  Slaps total: 4230 4 K
 Tonero said
My boys mortgage just went up almost a G , year 1 of home ownership....damn
Did his property taxes, home insurance increase? Please tell me he ainít out here with a variable rate
+1   

 2 months ago '05        #15
Tonero 
Props total: 13691 13 K  Slaps total: 3276 3 K
 killadre said
Did his property taxes, home insurance increase? Please tell me he ainít out here with a variable rate
He is , taxes did go up as well , this dude has 4 kids too
+8   

 2 months ago '21        #16
WindyCitySavage 
Props total: 5217 5 K  Slaps total: 578 578
 Tonero said
My boys mortgage just went up almost a G , year 1 of home ownership....damn

He has a adjustable rate mortgage?




Dumbest sh*t you can do.. And then to not refinance last year and lock in a low a*s rate.


+17   

 2 months ago '04        #17
killadre  topics gone triple plat - Number 1 spot x2
Props total: 62396 62 K  Slaps total: 4230 4 K
 Tonero said
He is , taxes did go up as well , this dude has 4 kids too



Your homie tweaked for not refinancing last year. Literally threw away hundreds of thousands of dollars.

As far property taxes I got a lawyer on retainer to contest all the property taxes for each one of my properties each year. Technically a person can do that themselves but it’s easier for me to pay the lawyer.
+12   

 2 months ago '05        #18
projectd06 
Props total: 42781 42 K  Slaps total: 9561 9 K
 Booda Sack said
I bet the whole economy will crash after midterms
You're an idiot but you are probably right.

 2 months ago '14        #19
Meech 
Props total: 976 976  Slaps total: 53 53
 philly337 said
This bullsh*t always happens when I'm about to makes some moves. Recession hit in 08 when I was about to do some things. Now I'm sitting nice and really about to go to a whole other level and this sh*t is happening

I knew it was coming but still some bullsh*t
What you mean my guy? If you have cash available you should be sitting in a very good place to cash in in the next few months/ years to take advantage.

 2 months ago '21        #20
The jinx  topics gone triple plat - Number 1 spot x8
Props total: 16580 16 K  Slaps total: 7892 7 K
 burtbeezy said
This was happening under Trump the house rate and mortgage rate where going up under his presidential term, but just blame the person you don't like , this why sh*t like this happens we always blaming the wrong people for sh*t and not th people who really caused things
Shut up idiot you are not smart no that isnt true. Interest rates were at a all time low stock market at a all time high. Now we at all time low market all time high interest. Stats dont lie dummy
+2   

 2 months ago '22        #21
EarthMover 
Props total: 2948 2 K  Slaps total: 543 543
 Bxlife said
A planned destruction of America.
 Bxlife said
It's about to be buying season...Hope you all are holding cash.


Which one is it? Buying season or a so called “planned destruction of America”?


Last edited by EarthMover; 09-26-2022 at 06:17 PM..
+2   

 2 months ago '17        #22
Its 
Props total: 47566 47 K  Slaps total: 3534 3 K
 philly337 said
This bullsh*t always happens when I'm about to makes some moves. Recession hit in 08 when I was about to do some things. Now I'm sitting nice and really about to go to a whole other level and this sh*t is happening

I knew it was coming but still some bullsh*t

Having cash on hand during a crash is literally the best position to be in

I hope that's not what you're saying lol
-1   

 2 months ago '22        #23
EarthMover 
Props total: 2948 2 K  Slaps total: 543 543
 Its said
Having cash on hand during a crash is literally the best position to be in

I hope that's not what you're saying lol


He Capping like a mutha fu*ka
+2   

 2 months ago '04        #24
killadre  topics gone triple plat - Number 1 spot x2
Props total: 62396 62 K  Slaps total: 4230 4 K
 Its said
Having cash on hand during a crash is literally the best position to be in

I hope that's not what you're saying lol
 philly337 said
This bullsh*t always happens when I'm about to makes some moves. Recession hit in 08 when I was about to do some things. Now I'm sitting nice and really about to go to a whole other level and this sh*t is happening

I knew it was coming but still some bullsh*t
 EarthMover said


He Capping like a mutha fu*ka


Not that cap table boy we live this

 2 months ago '06        #25
philly337  topics gone triple plat - Number 1 spot x1
Props total: 66140 66 K  Slaps total: 18261 18 K
 Its said
Having cash on hand during a crash is literally the best position to be in

I hope that's not what you're saying lol
There's going to be a wait and finding the bottom is harder than you think.

And no it's not the best position to be in...its bigger gains over a short period but the best one to be in is when it's continously going up. People are spending and you are more liquid and also have more security on your income.

The scenario I'm talking for me personally is a perfect example. If things kept going how they were I'm going to crazy heights. Now I have to time it...I might think it's the bottom and buy and then drops further

Also no matter how secure you think your job or business is when sh*t hits the fan its not as safe as you think. If demand drops because people can't buy that's what happens...then while youre waiting out the bottom you're money dries up and lose it all

Seen it happen to many people in 08 recession


Last edited by philly337; 09-27-2022 at 10:03 AM..
+3   



Sign me up
 
 

yesterday...


most viewed right now
+47online now  46
Video inside Desi talks about going to Africa and being mesmerized by a woman he was..
62 comments
23 hours ago
@wild'ish
most viewed right now
online now  39
YoungBoy makin bobby conspiracy relevant
197 comments
19 hours ago
@hiphop
most viewed right now
+42online now  27
salehe bembury 990v2
27 comments
21 hours ago
@gear
most viewed right now
+113online now  25
Video inside Nov 27 - Cops Raid The WRONG House And Regret It Immediately
71 comments
18 hours ago
@news
back to top
register register Follow BX @ Twitter search BX privacyprivacy