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Barbara Corcoran: 1% Interest Rate Drop Will Send Housing Prices 'Through the Roof'
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By News
Published 1 month ago on
April 18, 2024

Barbara Corcoran, founder of The Corcoran Group and known for her role on "Shark Tank," said she would not be surprised if home prices increase by another 8% to 10%. (Shutterstock)

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Barbara Corcoran, founder of The Corcoran Group and known for her role on “Shark Tank,” recently discussed the potential shifts in the housing market during an interview on “Cavuto: Coast to Coast.”

Corcoran, a prominent figure in commerce, finance, and real estate, shared insights into how interest rates may impact housing prices and buyer behavior.

“I can’t explain the rates going up or down – that’s not my bailiwick. But what I can explain is if rates go down, just another percentage point, that’s what I’m hoping for, prices are going to go through the roof,” Corcoran said in the interview.

Corcoran expressed optimism about the market if interest rates were to decrease, stating that even a one-percentage-point drop could significantly boost housing prices. “Everyone will come out and buy. There are probably 10 buyers on the sidelines waiting for interest rates to come down that are actually active in the market,” she continued. “So everybody’s going to charge the market.”

Where Are Current Interest Rates?

As of Wednesday, April 17, the interest rates for 30-year and 15-year fixed-rate mortgages were at 7.3% and 6.5%, respectively, according to bankrate.com.

The Federal Reserve’s decision to maintain interest rates at a high level during its latest meeting was noted, which could keep mortgage rates and other borrowing costs elevated.

“If you wait for interest rates to come down by another point, I don’t think you’ll gain. I think you’ll wind up paying more,” Corcoran cautioned. “Because I wouldn’t be surprised if real estate went up by another 8 or 10% if interest rates come down.”

Sellers Want the Most Money

Corcoran also addressed predictions about house prices potentially decreasing due to sellers paying lower commissions.

“A lot of people are predicting house prices will come down because the seller will pay less of a commission and take that difference and give it to the buyer,” she said. “Sellers aren’t made that way. When the seller lists a home, they want the most money they can get, so they’re going to take any savings and put it in their pocket.”

Corcoran’s Market Outlook

Regarding the overall market outlook, Corcoran highlighted the importance of addressing the housing supply shortage, which she views as a key factor that could propel the real estate market forward.

“Whenever there’s uncertainty, people stall. And whenever people stall, it stalls the marketplace,” Corcoran noted. “But despite that, and overriding all of that, is a shortage of houses.”

Corcoran’s analysis underscores the significant impact that interest rates and housing supply dynamics can have on real estate trends.

For more information on this topic, visit Fox Business.

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