Corcoran Group founder Barbara Corcoran argues that the decline in mortgage rates will be ‘huge’ for markets during an appearance on ‘Cavuto: Coast to Coast.’
The U.S. housing market is swinging between hot and cold, and the Corcoran Group’s matrix points to one thing that could keep buyers and sellers warm through 2025.
“The buyers themselves are used to the prices being what they are, they’re just tired of waiting. But I wonder if we’ll ever see the 5% number because anything with 5% in front of it makes this market go well,” said Barbara Corcoran in “Cavuto: Coast to Coast” on Thursday.
“Prices have been increasing for a long time, 6 to 7%. So people are confused,” he continued. “They’re not expecting much. They’re not waiting for a huge price drop. If that happens, God, it’s going to be amazing in the market.”
The 30-year mortgage rate rose to 7% this week, as Freddie Mac’s latest Primary Mortgage Market survey showed the average rate rose to 6.84% compared to last week’s 6.78%.
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Meanwhile, the National Association of Realtors on Thursday reported that existing home sales fell 3.4% in October from the previous month to 3.96 million, rising from a 14-year low in September.
Barbara Corcoran makes the case for interest rates reaching 5% in “Cavuto: Coast to Coast.” (FOX Business)
But Corcoran is concerned about the current number of homebuyers, saying more first-time owners are needed in the market.
“What saddens me the most is that the number of first-time buyers is at 24%, which is the lowest number in history. And the number of elderly people who buy money is the highest in history, it is 27%,” he said. .
In a wide-ranging interview on ‘Cavuto: Coast to Coast,’ The Corcoran Group Founder and ‘Shark Tank’ star Barbara Corcoran talks about the real estate market and challenges.
“I think what we’re losing right now, and what we need the most, are first-time buyers,” Corcoran added. “In the last month alone, we have sold more than 3.5% of houses despite what is happening with interest rates. But there are not that many first-time buyers.”
If rates were to rise, the CEO of the Corcoran Group warned that it could affect many sectors of the US economy.
“The whole market would go down. The whole economy would go down, all the resources to support the housing market. It would be a terrible thing,” he said. “But I don’t think people think it will go away [that] a lot, if you really listen to the experts.”
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However, there are local housing markets that are keeping warm across the South and Midwest.
“The South didn’t do as well as the Midwest. Prices in the Midwest are up 7% compared to last year,” Corcoran noted. “I think it’s an important market. It’s got a lot of steam in it. And again, I’m just saying wait for that 5% number. Anything with 5% and you’ll be walking away, and I’ll sell your house.”
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Breck Dumas of FOX Business contributed to this report.
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