Barbara Corcoran wants homebuyers to stop thinking so much about mortgage rates and enter the housing market.
The 75-year-old real estate mogul has been in the business for over 50 years. Corcoran is also widely known as one of the original sharks on ABC’s “Shark Tank,” having appeared in all 15 seasons of the show.
In an August interview with Bloomberg Television, Corcoran spoke candidly about the housing market and why she thinks potential homebuyers are wasting time waiting for interest rates to come down.
“If you would take my advice, I would say get out there,” Corcoran says. “You need one more point to bring everybody out into the market, and what’s going to happen is you’re going to pay more for the house.”
“Wait until you see what happens with prices when interest rates come down another percentage point,” she added.
Corcoran’s advice follows news that mortgage rates are starting to drop. According to Mortgage News Daily, the average rate on the popular 30-year-fixed mortgage dropped to 6.4%, the lowest it’s been since April 2023.
In the interview, Corcoran also discussed housing affordability in the U.S. and home prices and rents continuing to rise nationwide.
“Renting keeps going up anywhere in the United States and that’s a real concern because people can’t afford the rent space based on their income,” she said.
“I also worry much more so about people getting their piece of the American dream because the starting house market is the hardest hit where the greatest bidding is going on,” Corcoran added.
The average rent for an apartment in the U.S. is $1,713, according to RentCafe, while the average United States home value is $362,481 up 3.3% over the past year, according to Zillow.
This isn’t the first time that Corcoran has suggested entering the real estate market without waiting for interest rates to come down.
In a 2023 interview on the “Elvis Duran Show,” Corcoran similarly said the best time to buy is always now, and interest rates were between 7% and 8% then.
“I think the sooner you get in the market, the sooner you have a chip in the game. You can trade up,” Corcoran said. “It’s always a good time [to buy]. You only get one chance to live. You are not buying an investment only, you are buying a home to raise your kids in, to have good times, to cook in your kitchen. You want to get in the market. Prices always long term go up … so why wait?”
Corcoran’s advice remained the same in a different interview on a 2023 episode of the Chicks in the Office podcast.
“Forget about the timing. The timing of what you earn on that home has more to do with when you have to move than when you buy in. You’re not in charge of that; your life is,” she said.
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank,” which features Barbara Corcoran as a panelist.
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