Barbara Corcoran’s Prediction: A Magic Number to Skyrocket US Housing Prices
“Barbara Corcoran Predicts ‘Magic Number’ That Will Send US Housing Prices ‘Through the Roof'”
In a recent interview on Fox Business’ “Cavuto: Coast to Coast,” renowned real estate mogul and “Shark Tank” star Barbara Corcoran made a bold prediction about the future of the US housing market. Corcoran believes that there is a “magic number” that, once reached, will cause a surge in housing prices that could potentially send them “through the roof.”
While many potential homebuyers are waiting for mortgage rates to drop before entering the market, Corcoran suggests that this strategy may not pay off as expected. Currently, the 30-year mortgage rate is hovering around 7%, which has deterred some buyers. However, Corcoran predicts that if rates were to decrease by just one percentage point, the increased affordability would lead to a significant uptick in demand and subsequently drive prices higher.
Corcoran warns against waiting for interest rates to fall further, as she believes this could result in buyers ultimately paying more for homes. She suggests that if rates were to drop by a full percentage point, home prices could increase by as much as 8% to 10%.
Experts are divided on the future trajectory of mortgage rates, with the Mortgage Bankers Association forecasting rates to end at 6.1% by the end of 2024 and Fannie Mae anticipating a dip to 5.9% in the fourth quarter. The Federal Reserve’s potential cuts to the federal funds rate could also impact home loan rates in the coming months.
Corcoran’s advice to potential homebuyers echoes her previous remarks from December, encouraging them to act sooner rather than later to avoid missing out on favorable pricing opportunities. She recommends working with a knowledgeable broker, getting pre-approved for a mortgage, and being prepared to move quickly when the right opportunity arises.
While the future of the housing market remains uncertain, Corcoran’s insights suggest that now may be the time for buyers to act if they want to secure a good deal before prices potentially skyrocket.
