03:23 PM EST, 02/28/2025 (MT Newswires) -- The share of pending home sale deals getting canceled in the US reached the highest for January since at least 2017 amid elevated housing costs and economic uncertainty, Redfin (RDFN) said Friday.

A little more than 41,000 home-purchase agreements fell through last month, or 14.3% of homes that went under contract during the month, up from 13.4% a year earlier. That marked the highest cancellation rate for January on record, based on data going back through 2017.

Home prices and mortgage rates continue to be "stubbornly high," with January's average interest rate reaching an eight-month high of 6.96%, Redfin said.

"I'm seeing more homebuyers back out of deals than usual, and I'm hearing the same from other agents and mortgage lenders in the area," Redfin premier agent Sam Brinton said. "Some buyers are getting cold feet with everything going on in the world."

The report showed that demand is decreasing, while housing inventory hit its highest level since 2020.

On Thursday, data from the National Association of Realtors showed that pending home sales in the US fell more than projected in January to an all-time index low.

Atlanta, Las Vegas, Houston and parts of Florida saw the largest share of pending deals falling through amid growing supply. Among the major US metros, Los Angeles saw one of the biggest increases in nixed sales, due largely to the recent wildfires, Redfin said.

Broadly speaking, a record 16.4% of deals were canceled in March 2020 amid the coronavirus pandemic, while "nearly as many" deals were shelved in October 2022 as mortgage rates topped 7% for the first time in two decades, according to the report.

Price: 6.68, Change: -0.97, Percent Change: -12.63