The chart of the week shows home-purchase cancellations have climbed back near a recent high of roughly 16%, showing that a growing number of buyers are backing out after signing contracts. While cancellation rates hovered near 11–12% before 2020, volatility increased sharply during the pandemic and never fully normalized. The renewed surge since 2022 reflects the likely shock of higher mortgage rates combined with elevated home prices. Buyers today are far more sensitive to monthly payment changes, inspections, and appraisal gaps than in prior years. This spike suggests affordability stress is now the dominant force in housing demand. And while investment markets have been on a strong run, headline risks could also be a factor in the big jump. Home sales are likely to recover once mortgage rates stabilize or decline, giving buyers clearer expectations around monthly payments. At the same time, either price moderation or faster income growth is needed to restore affordability. Finally, improved consumer confidence, driven by job stability and lower inflation, would help buyers feel comfortable committing to large, long-term purchases again.