Shark Tank's Barbara Corcoran Talks About Rates and Why You Should Buy a Home Now!

In the ever-evolving world of real estate and mortgages, it's always valuable to gain insights from industry experts. Recently, Barbara Corcoran, a well-known real estate mogul and one of the stars of ABC's "Shark Tank," shared her thoughts on the current state of mortgage rates. In this article, Ratti Lending at Envoy Mortgage gives you our takeaways, from her insights featured on Good Morning America, and we explore the implications of mortgage rates for homebuyers and the real estate market, in the coming months.

Will Rates Go Down?

Economic forecasters, like Barbara Corcoran, agree that rates are likely to go down in the near future. But the question about rates going down needs to be evaluated in context. Why? Because if rates go down, but home prices inflate, the net result may mean you actually end up paying more for your house and your monthly mortgage payment. As demonstrated in the video above (see the 0:18 second slide), a $435,000 home in 2023 may increase dramatically when rates go down. If that same house sells for $517,500, your payment is slightly more, but you've paid $82,000 more! Multiply that times 30 years worth of payments and it could cost you substantially more!

Should I Wait to Buy Until Rates Go Down?

Should Many people are waiting to buy or sell their homes, waiting for rates to go down. This is particularly problematic for those who are having a hard time affording a home, now. Why? As mentioned in the video above, we expect home prices to increase dramatically because all of those people 'waiting for rates to go down' will be jumping off the sidelines and in a frenzy to buy a home! Barbara's forecast is "housing prices may go up 10-15% or more." So, if you remember the bidding wars we saw for homes in 2020 & 2021 - we expect that to be even more frantic if or when rates come down. This pent-up demand is going to cause a real feeding frenzy and drive the cost of homes even higher.

Affordability

Affordability is another issue that is becoming increasingly more challenging. If you were qualified to buy a $450,000 house now, you may have more challenges qualifying for a mortgage of $500,000+. Add to that the rising rental costs and it seems everyone is feeling the struggle of this housing crisis.

Sellers Need to Take Notice Too

Sellers who think they will get a big pay day if they wait for rates to come down will indeed get more money for their home. However, they will have to turn around and spend more to get their next home. So, that windfall you're expecting may be a complete wash and a bigger challenge when it comes to winning the contract on your next home.

At Ratti Lending @ Envoy Mortgage, we have seen the cycles come and go over the past 30 years. We strongly advise buyers and sellers to consider all the factors and buy now! If rates do come down, you will most likely be able to refinance at a lower rate, so that creates a win/win for those that are willing to buy a home now vs. later. If you'd like a free analysis of your current situation, we would be happy to run the numbers for you. And, if you do buy now, we would be happy to assist you with refinancing options later.

You can reach out to us or apply online at RattiLending.com - Home of the Dog-Friendly Mortgage.

#RattiLending #BarbaraCorcoran #SharkTank #MortgageRates #WillRatesGoDown