The mortgage rate is downward, with the 30-year fixed interest rate “down 6.96% for just a small portion of the points,” representing the lowest interest rate in six weeks, according to Corcoran. The 15 revised loan rate was 6.21% as of Thursday. However, Corcoran believes that a minimal drop is not sufficient to drive major market challenges.
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Barbara Corcoran, founder of the Corcoran Group, warned Thursday to home buyers and sellers who have not yet left the woods when it comes to market challenges today.
During her recent appearance with Maria at Fox Business, the “Shark Tank” entrepreneur was asked by host Maria Bartilomo how mortgage rates are affecting the industry.
Market challenges and impacts for buyers and sellers
The mortgage rate is downward, with the 30-year fixed interest rate “down 6.96% for just a small portion of the points,” representing the lowest interest rate in six weeks, according to Corcoran. The 15 revised loan rate was 6.21% as of Thursday. However, Corcoran believes that a minimal drop is not sufficient to drive major market challenges.
Corcoran says interest rates are affecting the market in two ways, both financially and psychologically.
“Mentally, it’s going to affect the housing market because people are waiting for very good news and getting off a tenth of a point is not really good news,” she said. “I went from 7 [percent] Go to 6.9. Psychologically, it makes a difference, but what really causes is the lack of homes in the market as interest rates remain high. ”
The house is not selling
Despite Corcoran’s belief that fewer homes are available, a recent Redfin analysis reveals an increase in the new list. However, these homes are not sold quickly, and many people have been sitting on the market for at least 55 days.
The seller hesitates
With the spring home buying season approaching, Bartiromo asked if home buyers would start to be “realistic” about pricing.
Corcoran is sluggish with her reaction.
“No, I don’t think it’s realistically or honestly in the nature of the sellers. Their homes are always more valuable,” explained Kolcoran.
She also doesn’t expect home prices to fall anytime soon. This is another factor that keeps sellers on the sidelines. Redfin data shows pending sales rose to 65,603 as of January.
“I don’t think prices will shake at all. I think they want interest rates to drop again. And what is that for them?” she continued. “It’s already six months, and many sellers have very low interest rates that they don’t want to give up.”
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