CHARLOTTE, N.C. — As mortgage rates top 7%, buyers are still making offers but then getting cold feet after submitting bids.

What You Need To Know

  • The average rate for a 30-year mortgage rates is above 7%, the highest its been in more than 20 years

  • Deals fell through for more than 15% of the homes that went under contract across the nation last month, the highest rate in almost a year, according to Redfin

  • August sales in Charlotte dropped nearly 15% compared with the same time last year, which canceled contracts contributed to as well

Redfin’s latest data shows an increase in the number of pending contracts that fell through in August — 60,000 nationwide. That’s more than 15% of the homes that went under contract last month. 

Canopy Realtor Association’s most recent analysis showed Charlotte area sales dropped 14.8% in August compared with last year.  

Tiffany Johannes, Canopy's president, says cancellations have a lot to do with inspection outcomes and loan numbers. Her advice to potential buyers: Do your research before you’re under contract. See what you can afford before you start shopping for a new home.

“If you’re thinking about buying, go ahead and do your due diligence,” she said. “Go deep with your lender. Make sure you understand all of the options and what could be available next year.”

Even though buyers are now walking away from deals, rather than paying tens of thousands — and in some cases hundreds of thousands of dollars above asking price — Johannes says it’s still a seller’s market.

“Our inventory is still very low. When you look at the days on the market, it's still very low compared to what it would be in an even market, or even a buyer’s market,” she said.

She added sellers should remain cautious, as they may not get the asking price for their home.