Home buyers are backing out of deals at the highest rate in a year as surging mortgage rates slam the housing market

• People are cancelling home deals at the highest rate in a year, as high mortgage rates give buyers cold feet.
• Deal cancellations notched 16.6% in September according to Redfin, a new high since October last year.
• The housing market is tight, but buyers "hold all the cards," Redfin said.

A cocktail of high mortgage rates and high home prices has driven potential buyers to back out of deals at the highest rate in a year.

Monthly pending home sales that fell out of a contract in September notched 16.7%, the highest since October 2022 when mortgage rates surpassed 7%.