Home-purchase contracts in the United States were canceled at a record rate in July 2025, according to data from Redfin. Approximately 58,000 agreements fell through last month, representing 15.3% of homes that went under contract, marking the highest cancellation rate for a July since at least 2017. The surge in cancellations is attributed to factors including high mortgage rates, a weak economy, increased housing supply, and declining home prices, creating a buyer's market in many areas. Summer home sales have slowed to their weakest pace in a decade, with first-time homebuyers reaching a record low. Regional markets such as South Florida are experiencing some of the highest cancellation rates, indicating a cooling trend after several years of strong activity. Additionally, housing permits have dropped to cycle lows, suggesting further market weakness may be forthcoming.