One in all America’s most distinguished figures of commerce, finance and real estate has unveiled exactly when the housing market may even see its next drastic shift.
“I can’t explain the rates going up or down – that’s not my bailiwick. But what I can explain is that if rates go down, just one other percentage point, that’s what I’m hoping for, prices are going to go through the roof,” The Corcoran Group founder and “Shark Tank” investor Barbara Corcoran said in a wide-ranging interview on “Cavuto: Coast to Coast” Wednesday.
“Everyone will come out and buy. There are probably 10 buyers on the sidelines waiting for rates of interest to return down which are actually energetic in the market,” she continued. “So everybody’s going to charge the market.”
As of March 27, the rate of interest on a 30-year fixed-rate mortgage sat at 7% while the 15-year fixed-rate mortgage was 6.125%, each unchanged from the previous day.
The Federal Reserve left rates of interest unchanged for the fifth straight time in its latest meeting, while clarifying that plans to chop rates could also be pushed out further, but remained committed to 3 this 12 months.
The choice, which was widely expected, keeps the federal funds rate between a spread of 5.25% to five.5%, a 22-year-high. This can even keep rates for mortgages, loans and bank cards at elevated levels.
“If you happen to wait for rates of interest to return down by one other point, I don’t think you’ll gain. I believe you’ll wind up paying more,” Corcoran cautioned, “because I wouldn’t be surprised if real estate went up by one other 8 or 10% if rates of interest come down.”
“There’s a magic number that makes people get all juicy about. And it just has to slip down there for everyone to say: let’s get on the market and make the most of it,” she added.
Corcoran also expanded on recent commentary where she argued that the cost of selling homes could go down this 12 months, however it doesn’t mean housing price tags will go lower.
“Loads of individuals are predicting house prices will come down because the seller pays less of a commission and take that difference and provides it to the buyer. Sellers aren’t made that way. When the seller lists a house, they need the most money they will get, in order that they’re going to take any savings and put it of their pocket,” she told FOX Business’ Neil Cavuto.
“The price of housing, I think, will go up since it has been going up. It’s been going up for the last five years, despite the dire state of the shortage of homes,” Corcoran said. “So house prices have gone up 6% this 12 months alone. But the real deal is, [there] shouldn’t be enough houses to go around.”
Amid other macroeconomic uncertainties, the one factor that might push real estate on an upward trajectory is more supply, based on the industry leader.
“Each time there’s uncertainty, people stall. And every time people stall, it stalls the marketplace. So any form of uncertainty slows down the market,” Corcoran noted. “But despite that, and overriding all of that, is a shortage of homes. You’ll be able to’t erase a shortage of homes, and it’s going to push that market forward.”
FOX Business’ Suzanne O’Halloran contributed to this report.