When did the Federal Reserve cut interest rates?

The Federal Reserve cut interest rates in September.

What mortgage rate does Barbara Corcoran believe will cause a housing frenzy?

Barbara Corcoran believes a mortgage rate with a 5% in front of it would cause a buying frenzy.

When will mortgage rates reach 5% according to economists?

Economists project that a 5% fixed mortgage rate is a far-off target, unlikely within the next five years.

Home / Business and Economy / Barbara Corcoran Predicts Housing Frenzy Below 5%

Barbara Corcoran Predicts Housing Frenzy Below 5%

6 Dec, 2025

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Summary

Federal Reserve interest rate cuts aim to combat inflation and rising mortgage rates.
Barbara Corcoran anticipates a housing market boom if rates hit 5%.
Economists foresee 5% mortgage rates as a distant target within five years.

Barbara Corcoran Predicts Housing Frenzy Below 5%

In a move to combat escalating inflation and soaring mortgage rates, the Federal Reserve implemented interest rate cuts in September. This action has seen 30-year mortgage rates decline into the low 6% range, a significant drop from the near 7% peak earlier in the year. These reductions have fostered optimism among many economists regarding the housing market's trajectory heading into the final quarter of 2025.

Real estate mogul Barbara Corcoran echoed this sentiment, suggesting that a mortgage rate "with a 5% in front of it" would invigorate the market and prompt hesitant buyers. She highlighted that historically low rates, coupled with increased property taxes, have priced out many, particularly the baby boomer generation, and deterred first-time homebuyers. The current market faces a stagnation in sales despite new construction, creating an imbalance with too many sellers and insufficient buyers.