Redfin stock tumbles after it says housing market deals are falling through at the fastest rate in 2 years

Shares of Redfin Corp.
RDFN,
-8.84%
tumbled 9.6% in morning trading Monday, after the online real estate services company said that housing market deals are falling through at the fastest clip in two years, as home buyers are using a slowing market to try to renegotiate. In addition, buyers are backing out because higher mortgage rates mean they can no longer afford the home they agreed to buy. The company said roughly 60,000 home-purchase agreements across the country in June, or 14.9% of homes that went under contract, fell through. That’s the highest percentage since March and April 2020, at the onset of the COVID-19 pandemic. “The slowdown in housing-market competition is giving homebuyers room to negotiate, which is one reason more of them are backing out of deals,” said Redfin Chief Economist Taylor Marr. “Buyers are increasingly keeping rather than waiving inspection and appraisal contingencies. That gives them the flexibility to call the deal off if issues arise during the homebuying process.” Redfin’s stock has tumbled 77.6% year to date, while the S&P 500
SPX,
-0.68%
has shed 19.0%.