Issues related to obtaining financing continued to be the main factor that delayed closings in April. The majority of contracts—78 percent—were settled on time in April. But 17 percent were delayed and 5 percent were terminated, according to the REALTORS® Confidence Index, based on a survey of more than 4,500 REALTORS® who were asked about their transactions in April.
The top issues that caused a delay to settlement were:
- Issues related to obtaining financing: 30%
- Home inspection/environmental issues: 19%
- Appraisal issues: 18%
- Titling/deed issues: 11%
Seventy-five percent of contracts in April contained contingencies, according to the survey. The chief contract settlement contingencies were home inspection (55%), obtaining financing (44%), appraisal (41%), and having a clear title (10%).
Rising mortgage rates over the past few months are prompting some homeowners to pause their selling plans, the survey found. Real estate professionals said that 13 percent of their clients ultimately decided not to move or sell in order to keep their current mortgage rate. Mortgage rates have been on the rise since the beginning of this year.
Source: “REALTORS® Confidence Index Survey: April 2018,” National Association of REALTORS®