The founder of Corcoran Group, Barbara Corcoran, discusses the loss of her house in Los Angeles against forest fires, the Governor Governor Newsom meeting with President Donald Trump, insurance companies canceling policies and mortgage rates Americans.
The sunny sky does not yet shine on the American real estate market, according to one of the best experts in the country and “Shark Tank” entrepreneurs.
“No one wants to move and [there are] Fewer houses to choose at higher rates. It is therefore difficult for house buyers, “said Barbara Corcoran, the founder of the Corcoran group “Mornings with Maria,” THURSDAY.
Mortgage rates drop “by a fraction of a point,” said Corcoran while reacting to fixed rates of 30 years falling to 6.96% – the lowest level in six weeks. Thursday, the fixed loan rate of 15 years was 6.21%.
However, according to Corcoran, the prices are not low enough for the sellers to enumerate their houses. Redfin reported in December The fact that more than half (54.5%) of houses on the market had been registered for more than 60 days, many of which are deemed too expensive by potential buyers.
Trump wants to repair the crisis of the affordability of housing: what it will take
“Mentally, this affects the housing market because people are waiting for very good news and going down a tenth at one point is not really good news. This has gone from 7 [percent] at 6.9, “she explained.” Psychologically, that makes a difference, but with the interest rates that remain high, what it really causes is fewer houses on the market. “”
The founder of Corcoran Group, Barbara Corcoran, shares good and bad news on American housing, the “Mornings with Maria” on Thursday. (Getty Images)
In addition, the real estate expert does not believe that the prices of houses will drop out anytime soon.
“I don’t think it’s in the nature of the sellers to be realistic, honestly. Their house is worth more,” said Corcoran.
The founder of the Corcoran group, Barbara Corcoran, maintains that a massive drop in mortgage rate would be “formidable” for the markets during an appearance on “Cavuto: Coast to Coast”.
“I don’t think The prices will take place at all. I think they will hold out hoping that interest rates will drop. And what is it for them? “She continued.” It’s still six months. And many sellers have very low interest rates that they do not want to abandon. “”
This current stagnant market was preceded by a burst of activities motivated by high demand during the pandemic, but has slowed considerably, because the prices of the arrow houses led to a crisis of continuous affordability that has pushed property property for many Americans.
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Serhant. The founder and the possession of Manhattan ‘, Ryan Serhant, breaks down the latest data on American real estate, declaring that the fixation of affordability begins with the opening of the doors of the loan and the liberation of the federal land for the construction of houses .
Certain pockets of optimism can be found on the luxury housing market, because Corcoran noted that these offers are doubled the rate of the national average.
“I really like the luxury market. I hate saying that I am very optimistic about it, especially in hot climates. All prices … almost increase the national average. And it is a fairly good bulletin. “
Breck Dumas of Fox Business contributed to this report.
