This graph shows that the number of home sales that end up as cancellations has risen dramatically. Some of the cancellations are the result of lower appraisals and the inability to get a mortgage. The largest reason for cancellations is simply other things besides the other two reasons. I suspect that it would also include other problems in the mortgage seeking process. Many applications for mortgages are never submitted if factors are discovered which would result in a rejection by Fannie Mae or Freddie Mac which are the purchasers of the majority of mortgages. This is not good news for the housing market.
Saturday, March 3, 2012
High Rate Of Home Sale Cancellations Is Bad News For Housing Market
This graph shows that the number of home sales that end up as cancellations has risen dramatically. Some of the cancellations are the result of lower appraisals and the inability to get a mortgage. The largest reason for cancellations is simply other things besides the other two reasons. I suspect that it would also include other problems in the mortgage seeking process. Many applications for mortgages are never submitted if factors are discovered which would result in a rejection by Fannie Mae or Freddie Mac which are the purchasers of the majority of mortgages. This is not good news for the housing market.
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