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- 1 in 7 home sales are falling through
1 in 7 home sales are falling through
Plus: Mortgage rates just dropped below 6%
🐪 Wednesday! Hi, and welcome back to Mortgage Nuggets. Today’s newsletter is 622 words, a 2-minute read. Let’s dive in…
Disclaimer: Average mortgage rates as of February 24, 2026. © MND Daily Rate Index.
1. Mortgage applications rise slightly
Mortgage rates dropped to their lowest level since September 2022 last week, though homebuyer demand declined while refinance activity continued its recent surge, according to the Mortgage Bankers Association.
Key numbers:
30-year fixed rate fell to 6.09% from 6.17% — lowest in nearly 4 years
Refinance applications up 4% for the week, 150% higher year-over-year
Purchase applications down 5% for the week, though still 12% higher year-over-year
Total mortgage demand essentially flat, rising just 0.4%
Mixed signals: While lower rates are improving affordability and driving strong refinance growth, home prices remain elevated and economic uncertainty appears to be affecting purchase decisions.
2. 1 in 7 home sales are falling through
Nearly 40,000 home-sale agreements nationwide were canceled in January, equal to 13.7% of homes that went under contract that month. That’s up from 13.1% a year earlier, and the highest January share in records dating back to 2017.
Why cancellations are rising:
Buyer's market conditions: Hundreds of thousands more sellers than buyers nationwide, giving buyers negotiating power to back out during inspections or move to better options
Economic uncertainty: Buyers are getting jittery about making large purchases amid concerns about layoffs, tariffs, and geopolitical tensions
Highest cancellation rates:
| Lowest cancellation rates:
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3. More Nuggets
🛠️ Fannie Mae sues Houston apartment owner over alleged fake repairs. (IndustryDive)
⚖️ Zillow requests dismissal of class action RESPA lawsuit, claiming insufficient evidence. (Scotsman’s Guide)
🏡 Homebuilder stocks rise slightly on SCOTUS tariff decision. (CNBC)
🍼 ION: Breastmilk is no longer just for babies. (Bloomberg)
4. Mortgage rates just dropped below 6%, matching lowest level since 2022
A stock market sell-off had investors rushing to the relative safety of the bond market, causing yields to drop and mortgage rates to follow.
The average rate on the popular 30-year fixed mortgage fell to 5.99%, according to Mortgage News Daily, matching its lowest levels since 2022. Last year at this time the rate was 6.89%.
The drop in yields is due to a combination of factors, including new uncertainty over tariffs, cooling inflation and economic weakness shown in a lackluster gross domestic product report Friday.
5. LenderMac to acquire Direct Mortgage
California–based LenderMac Holdco LLC has agreed to acquire Utah-based Direct Mortgage Corp. in a bid to expand its national footprint and strengthen a multichannel mortgage platform. Financial terms were not disclosed.
Direct Mortgage brings nationwide operational experience and agency approvals with Fannie Mae, Freddie Mac, and Ginnie Mae, while LenderMac operates across wholesale, nondelegated, and correspondent channels and holds licenses in 18 states.
Over the past year, LenderMac produced about $124 million in originations, compared with Direct Mortgage’s $44 million, largely in conventional purchase loans.
☀️ You’re all caught up. See you on Friday!
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