Rocket Companies Inc. Press Release: Redfin's Home Purchase Cancellation Update

The report reveals that in April 2026, just over 47,000 home-sale agreements fell through, constituting 13.4% of homes that went under contract that month. This figure represents a slight decrease of 0.1 percentage points from March, positioning April as a month of relative stability compared to previous months. Notably, these cancellation rates are tied for the lowest since September 2024.

This data is derived from an analysis of Multiple Listing Service (MLS) pending-sales data and is reflective of seasonal trends, allowing for meaningful comparisons with past Aprils.

As homebuyers and sellers adapt to ongoing market conditions, the report highlights a shift in dynamics. Sellers are increasingly aware that they are in a buyer's market across much of the country. As a result, many are willing to lower prices or offer concessions to preserve deals. Concurrently, buyers have become accustomed to elevated housing payments, reducing the likelihood of backing out of agreements due to initial price shock.

An encouraging sign for potential buyers is the decline in the average 30-year fixed mortgage rate, which fell for three consecutive weeks in April, encouraging more buyers to lock in favorable rates. However, it is essential to note that mortgage rates experienced a rebound in May.

The report highlights a stark regional disparity in cancellation rates. In Atlanta, for instance, nearly one in five purchase agreements (19.3%) were canceled in April, marking the highest rate among the 50 largest U.S. metropolitan areas. Other Sun Belt cities showing elevated cancellation rates include San Antonio (18.9%), Fort Worth, TX (17.6%), Tampa, FL (17.4%), and Phoenix (17%).

This trend underscores the buyer's advantage in these markets, where the inventory of homes significantly exceeds demand, allowing buyers the flexibility to withdraw from contracts without severe repercussions.

In contrast, San Francisco demonstrated the lowest cancellation rate at just 2.8%. The city's robust housing market, fueled by its status as a technological hub, has created a competitive environment where buyers are less likely to withdraw from deals. Following San Francisco, Nassau County, NY (3.3%), and San Jose, CA (6.8%) also reported low cancellation rates, indicative of strong seller's markets where buyers face limited options.

The report also indicates that contract cancellations have declined month-over-month in roughly half of the 50 largest U.S. metros, with the most significant drop occurring in Orlando, where cancellations fell from 18.5% to 16.8%. New Brunswick, NJ, also saw a decrease, with cancellations reducing from 10.3% to 8.8%.

Conversely, Detroit reported the largest increase in cancellations, rising from 14.1% to 16.9%, which may reflect local economic uncertainties affecting buyer confidence.

As Rocket Companies Inc. and Redfin continue to offer insights into the evolving housing market, the findings from this report emphasize a moment of adjustment for both buyers and sellers. With a slight decrease in cancellations and shifts in market dynamics, stakeholders are encouraged to remain vigilant as economic conditions and buyer preferences evolve.

For more detailed insights and data analysis, readers are invited to explore Redfin's full report on contract cancellations.