Barbara Corcoran: If Mortgage Rates Hit This Number, the Market Will ‘Go Ballistic’

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Laura BogartMon, November 10, 2025 at 10:16 PM GMT+1 3 min readIf you’re one of the many Americans who are looking to purchase a home this year — especially if you’re hoping to buy your first home — you’re likely watching the housing market like a hawk. Perched on a branch, you wait for the four-bedroom home in the best school district to scamper within your reach before you pounce.Read Next: Florida Home Prices Are Dropping Rapidly: Should You Buy While Prices Are Low?For You: 6 Things You Must Do When Your Savings Reach $50,000All dramatics aside, finding the right time to buy can feel like a waiting game that requires you to act in an instant. Barbara Corcoran gets it. The author, financial expert, “Shark Tank” star and founder of the successful brokerage firm The Corcoran Group also follows the real estate market closely.In an interview on “Cavuto: Coast to Coast,” she said that even with recent market fluctuations, reaching a 5% mortgage rate would make the market “go ballistic.”The word “ballistic” can have a number of connotations. It begs the question: Would this “ballistic” market be good for buyers, sellers or both?Though rates aren’t as low as they’ve been in the past — according to The Mortgage Reports, a conventional 30-year fixed mortgage rate hovers around 6.26% — Corcoran said that buyers have mostly remained undeterred. A lower rate could only energize them further.“The buyers themselves have gotten accustomed to the rates being what they are, and they just got tired of waiting. But I am wondering if we’ll ever see a 5% number because anything with the 5% in front of it is going to make this market go ballistic,” she said.Corcoran added since rates have been fluctuating around 6% or 7% for a while, consumers don’t exactly have the highest expectations for a dramatic drop. However, if the rate were to fall to 5%, she noted that “it would be incredible for the market,” likely triggering a buying spree.Find Out: How Much House Does $300K, $400K and $500K Buy You in Every State?Part of the reason Corcoran is envisioning a “ballistic” market is that she’s concerned about the declining number of first-time homebuyers.The real estate expert highlighted that first-time buyers now account for just 24% of home purchases, the lowest level in history. Meanwhile, the share of all-cash buyers has reached a record high of 27%, highlighting increased competition for traditional buyers who rely on mortgage financing. 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