Rising costs and falling confidence in the U.S. economy are fast becoming a toxic cocktail for the housing market. As a result, a growing number of buyers are backing out of deals they’ve made with homebuilders and sellers of existing homes.

Homebuilder cancellation rates have more than doubled since April, according to surveys by John Burns Real Estate Consulting. In July, 17.6% of builder contracts fell through, compared with 8% in April and 7.5% in July 2021.

Texas and the broader Southwest are seeing the biggest jumps in builder cancellations, at 27% and 25%, respectively. Many Americans migrated to the Southwest during the early days of the Covid pandemic. Cancellations are also higher than the national average in Northern California and the Northwest, at 23% and 19%, respectively.