In a recent press release dated April 22, 2026, Rocket Companies Inc. shared noteworthy insights derived from a Redfin report revealing significant trends in the U.S. housing market. More than 53,000 home-purchase contracts fell through in March, marking a cancellation rate of 13.4%. This figure represents an increase from 12.5% a year earlier, tying with 2023 as the highest share recorded for March, aside from the tumultuous early pandemic period in 2020.

1. Rising Cancellations: A Closer Look

The data highlights that nearly 53,000 home-sale agreements fell through last month, according to an analysis of MLS pending-sales data by Redfin. The findings indicate that the seasonal nature of the housing market typically leads to a higher share of cancellations towards the end of the year, with a decrease expected in the spring months. However, this March showed an unusual spike in contract cancellations.

Factors Behind the Increase

Several critical factors are contributing to the rise in home-purchase agreement cancellations, suggesting a shift in buyer sentiment:

Buyer’s Market Dynamics: With approximately 600,000 more home sellers than buyers currently in the U.S. housing market, buyers are empowered to negotiate more favorable terms. This environment enables them to include contingencies, such as inspection clauses, allowing them to withdraw if they discover issues or find better options.

High Housing Costs: Rising mortgage rates and escalating home-sale prices have prompted some buyers to reconsider their financial commitments. After initially signing contracts, many buyers are reevaluating their long-term financial obligations, which has led to increased cancellations.

Economic Uncertainty: Ongoing geopolitical tensions, notably the Iran war, have created instability in financial markets, causing mortgage rates to rise further. This uncertainty has led potential buyers to hesitate on making significant purchases, contributing to an increase in cancellations as they weigh their options amidst volatile conditions.

Patricia Ammann, a Redfin Premier agent in Arlington, VA, summed up the situation succinctly: "Buyers are getting cold feet... because buyers are considering committing to spending so much money in uncertain times, they’re extremely picky, which is leading some of them to back out before a deal closes."

2. Geographic Trends in Cancellations

The report also outlines significant geographic disparities in cancellation rates across major U.S. markets:

Highest Cancellations

San Antonio recorded the highest cancellation rate at 18.7%, followed by other Sun Belt cities such as Orlando, FL (18.1%), Riverside, CA (18.1%), Atlanta (18%), and Las Vegas (17.8%). These markets are characterized by an abundance of sellers, allowing buyers to walk away from one deal and pursue another without significant repercussions.

Lowest Cancellations

Conversely, Nassau County, NY, boasted the lowest cancellation rate at just 3.5%. Other areas with lower cancellation rates included Montgomery County, PA (5.7%), Milwaukee (6.1%), New York (7.4%), and Seattle (8.5%). These markets illustrate a seller's advantage, where buyers are less likely to back out due to limited options.

Notable Changes in Specific Markets

The report also highlighted that Riverside and Atlanta experienced the most significant increases in cancellations, rising from 15.1% to 18.1% and from 15.3% to 18%, respectively. Interestingly, some metro areas, such as Miami and Cleveland, saw declines in cancellation rates, indicating a more stable market environment in those regions.

3. Conclusion

The latest data from Redfin underscores the evolving landscape of the U.S. housing market, as more than 50,000 home-purchase contracts fell through in March 2026. With buyers facing high costs and economic uncertainty, the market is witnessing a shift that may have lasting implications for home sales moving forward. As Rocket Companies continues to position itself as a leader in the real estate sector through technology-driven solutions, the insights from this report may help shape strategies to better serve clients in these unpredictable times.

For further details on the report, including a comprehensive metro-level summary, visit Redfin's official website.

Original press release