19% of pending Phoenix home sales fell through in September

Roughly 1 in 5 pending home sales in the Valley fell through this September, according to new Redfin data.

Why it matters: It's another sign of how steep interest rates are squashing sales activity.

Zoom in: The percentage of Valley homes that failed to close in September was the highest yet in 2023.

• It was lower than when rates first spiked last year, but higher than any month in 2020 and 2021 (with the exception of March 2020 when the start of the COVID pandemic briefly halted the market).

The big picture: Roughly 16% of U.S. home sales failed to close in September, the highest percentage in nearly a year, per the Redfin data.

• A buyer might no longer be able to afford a house because of climbing mortgage rates, pushing some to walk away, or causing underwriters to pull approval.
• Deals can also fall apart if a contingency in the contract isn't met — for example, if there's an issue with the home inspection.

Meanwhile, home sellers with low mortgage rates are less likely to make concessions for jittery buyers, says Daryl Fairweather, Redfin's chief economist.