‘Interest Rates Aren’t Coming Down’ — Barbara Corcoran’s Blunt Advice to Homebuyers
Written by
Laura Bogart
Edited by
Kristen Mae
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Finding the right time to begin your house hunt can feel like playing poker at a high-stakes table — just when you think you’ve got a winning hand, you realize you don’t have the aces you need. Climbing interest rates keep calling your bluff. You might begin to wonder if you’ll ever be ready to buy.
Barbara Corcoran, real estate mogul and “Shark Tank” star, has some blunt advice: “Prices are just going to continue to go up, [and] interest rates aren’t coming down.” But that doesn’t mean you should sit on the sidelines. Quite the opposite. Corcoran wants you to use this knowledge as the kick in the pants buyers need to get off the bench and take action.
When Is the Right Time To Buy a Home?
According to Corcoran, the right time to buy a house is whenever you have the down payment. You can’t control the market or force interest rates to drop, but you can focus on saving enough to make your move.
Corcoran’s advice aligns with that of many financial experts, who warn against obsessing over the market and trying to time buying decisions against it. Instead of waiting for the “perfect” conditions, buyers should focus on their personal financial readiness.
Think About the Long-Term
If you’re holding your breath for the perfect interest rate to magically appear — spoiler alert, it’s unlikely — think about the bigger picture.
Personal finance writer Minda Zetlin reminds you that your home is a long-term investment. Short-term fluctuations in the market and interest rates matter less than you might think if you plan to stay in your home for years or even decades.
“After all, you may wind up living in that home for several years, or maybe even decades,” Zetlin wrote for Inc. “When you look at it that way, year-to-year fluctuations in the market start to matter a lot less.”
At the end of the day, your goal isn’t to score bragging rights that you bought your house when interest rates were at their lowest — it’s to own a home you love. The place where you’ll entertain guests, host game nights (maybe even win at poker), and build memories.
Why Waiting Could Cost You More
Corcoran argues that waiting to enter the market could mean missing out on your dream home — especially when home prices continue to rise.
She points out that home prices increased 4% last year and are expected to rise even more next year. If you continue to wait, you may just end up paying more later. And though it’s true interest rates fluctuate, there’s no guarantee they’ll drop significantly anytime soon. In the meantime, if you’re paying rent, you’re paying someone else’s mortgage and building their equity and net worth, instead of your own.
Bottom line? Stop holding out for the perfect interest rate and start searching for your new home once you have that down payment in hand.
“Prices are just going to continue to go up. Interest rates aren’t coming down, so you might as well get out in the market and do something about it,” Corcoran said.
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