Barbara Corcoran Discusses Future of Housing Market and Mortgage Rates

According to Yahoo News, real estate expert and 'Shark Tank' star Barbara Corcoran recently shared her insights on the current housing market and mortgage rates with 'Good Morning America.' The average rate on a 30-year fixed mortgage is 7.22% as of November 30, up more than a percentage point from last year. Corcoran explained that high mortgage rates are the federal government's tool for controlling inflation and stabilizing the economy. She predicted that mortgage rates will eventually come down, but the Federal Reserve will hold firm on the federal funds rate until inflation reaches its target. Corcoran also commented on the strength of the housing market, stating that houses are not staying on the market for long and often sell for more than the asking price. The median sale price of a home in the U.S. is $414,633, up 2.2% year over year. She believes that when mortgage rates come down, more buyers will enter the market, potentially causing house prices to increase by 10 to 15%. For first-time homebuyers, Corcoran advised adjusting expectations and shopping for lower mortgage rates. She also suggested considering an adjustable-rate mortgage, as they are currently high but will adjust down when rates decrease. For those looking to sell their homes, Corcoran said that everything is selling quickly, with the average home sitting on the market for 20 days. However, she recommended waiting until next year when more buyers are expected to enter the market as interest rates decrease, potentially resulting in higher sale prices for homes.