Lower mortgage rates could lead to higher prices
Corcoran says, “There’s a magic number” that could entice homebuyers to come out of the woodwork, stir up demand, and cause home price growth to escalate even further.
“If you wait for interest rates to come down by another point, I don’t think you’ll gain — I think you’ll wind up paying more,” Corcoran warns. “I wouldn’t be surprised if real estate went up by another 8% or 10% if interest rates come down a full point.”
According to the latest data from Redfin, the median U.S. home-sale price was a record high of $397,482 as of July, up 4.7% year over year.
But there are other options for those hoping to invest in real estate who aren’t ready to enter the buyer’s market quite yet.
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Alternatively, you can explore the commercial sector by investing in high-quality properties leased by major brands like Kroger and Walmart through private equity firm First National Realty Partners (FNRP).
FNRP specializes in necessity-based commercial real estate, which tends to perform well even during periods of economic volatility.
As a private equity firm, FNRP acts as the deal leader, providing expertise, doing the legwork and streamlining the process, while accredited investors enjoy the potential to passively collect distribution income.
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The Fed is expected to introduce cuts to the federal funds rate in the near future, which would impact home loan rates as well.
Corcoran was echoing the same remarks she made in December, when she encouraged Americans to buy sooner rather than later to avoid a surge in demand and prices when mortgage rates fall.
“Find yourself a great broker who knows how to hustle because there’s always a deal to be had — no exceptions to that rule,” Corcoran advised in an interview on ABC News.
If you’re unsure of how to best manage your finances and investments to reach your homeownership goal, then you should consider calling another professional before you get to the point of hiring a broker, a financial advisor.
Advisor.com can help you find someone that’s right for you.
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You can view the advisors’ profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
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