Barbara Corcoran: Waiting for Real Estate Rates To Go Down Could Cost You
Written by
Adam Palasciano
Edited by
Chris Cluff
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The 2025 housing market in the U.S. has ushered in high mortgage rates and a deceiving spike in home prices even with the ebb and flow of supply and demand.
Many current homeowners aren’t willing to sell their homes, exacerbating the housing shortage and driving up prices further. Meanwhile, buyer demand has skyrocketed, creating one of the more expensive housing markets in recent history, even if the pace of growth has slowed compared to last year.
For historical context here’s a look at some mortgage rate statistics, according to The Mortgage Reports data:
- In February 2025, the average 30-year fixed mortgage rate was 6.76%, which is down from 6.85% the previous week.
- The average 30-year fixed mortgage rate at the start of 2025 was just above 7%.
- The all-time high for the 30-year fixed mortgage rate was 18.63% in October 1981.
- The 30-year fixed mortgage rate bottomed out at 2.65% in January 2021.
However, despite high mortgage rates, real estate mogul Barbara Corcoran explained that if you’re waiting for interest rates to drop, you’ll probably still spend more on a home anyway.
Home Prices Could Rise When Interest Rates Drop
With mortgage rates still stubbornly high in 2025, Corcoran said a drop in rates could send home prices even higher.
“I can’t explain the rates going up or down — that’s not my bailiwick. But what I can explain is if rates go down just another percentage point — that’s what I’m hoping for — prices are going to go through the roof,” Corcoran told Fox Business.
A drop in interest rates to 6% could have a major impact on the price of homes nationwide.
“Everybody is going to charge the market, and so if you wait for interest rates to come down by another point, I don’t think you’ll gain,” she said. “I think you’ll wind up paying more, because I wouldn’t be surprised if real estate went up by another 8% or 10% if interest rates come down another point.”
How To Decide Whether Buying a Home Now Is the Right Decision
Buying a home is one of the biggest financial decisions you can make. It’s important to be financially prepared before you decide to do so.
Here are a few questions to ask yourself first:
- Do I have at least 6-9 months’ worth of cash savings for monthly expenses in the event of an emergency?
- Can I afford a mortgage without spending more than 30% of my monthly income?
- Am I prepared to spend money on future home repairs and maintenance?
If you’ve answered yes to all of these questions and you have the cash for a down payment now, then it might be time to pull the trigger before homes become even more expensive.
Caitlyn Moorhead contributed to the reporting for this article.
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