Though 2026 has economists predicting more of a reset than a rebound for the housing market, real estate mogul, money expert and “Shark Tank” star Barbara Corcoran doesn’t think that should be a deterrent for those looking to buy a home.
If you’re thinking about purchasing property right now, the current interest rates may have given you pause, but they are expected to take a modest dip in the new year. The average rate on a 30-year fixed mortgage is about 6.11% as of Feb. 5. That’s down more than a percentage point from this time last year.
Mortgage Rates in 2026
Many consumers have been wondering whether mortgage rates will decrease after the last few years of being at the highest levels in decades.
“It’s the only tool the federal government has for controlling inflation and getting hold of our economy,” Corcoran said. “They’ve wanted to slow it down and it’s worked.”
Mortgage rates will come down, Corcoran predicted, but the Fed will hold firm on the federal funds rate until inflation reaches its target.
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Is the Housing Market Strong?
The good news is that the housing market is expected to see modest improvements in 2026, with more inventory and fewer shortages. Though the average rates are still elevated, they are lower than the previous few years, which is better for potential buyers looking to get locked into a loan.
Hopefully, this will mean a rebalancing toward buyer and seller equilibrium, but price growth will likely remain slow and vary regionally. This means you should expect more homes for sale, but also continued competition, depending on the popularity and demand of where you are looking to live.
“The housing market is strong. Everybody is surprised by it,” Corcoran said. “Houses are not staying on the market. They all sell. One-third of them sell for over the asking price, and there are just not enough houses to go around.”
But as strong as the market is, it’s also frustrating for buyers, and many people are sitting on sluggish real estate they are looking to sell due to rising prices, cost of living and job insecurity.
“There’s not a lot [of inventory] out there,” Corcoran said. “House prices are not going to come down. I believe that when the … mortgage rates come down … every buyer on the sidelines is going to jump into the market. As long as interest rates come down to 5% or 4% … I wouldn’t be surprised if houses go up 10 to 15% when that happens.”
Tips for First-Time Buyers
Corcoran’s advice for first-time homebuyers who are ready to look for their ideal home? “You have to adjust your horizon, you have to adjust what you’re looking for,” she said on the broadcast. It’s not an easy thing, especially when you know your neighbor has bought their house at a cheaper interest rate and at a lower price than yours.”
She also advised buyers to shop for a lower mortgage rate. “If you go to your main bank, they will usually give you, as a banker at their institution, one quarter percent off.”
Should You Consider an Adjustable-Rate Mortgage?
When asked if now is a good time to get an adjustable-rate mortgage, Corcoran said, “Of course it is. Because right now, adjustable rates are high, and they’ll adjust down when the rates go down.”
And when asked for her advice for people who have adjustable-rate mortgages that are about to reset, Corcoran quipped, “You really only have two choices: You either pay the bank or you get out of town.”
Final Take To Go: How To Sell Your Home in This Market
The bottom line is that if you’re ready to list your home, you shouldn’t necessarily have an issue selling it in many areas, but keep in mind there has been an uptick in sellers, more so than buyers, so the balance that is looking to right itself in 2026 may not have kicked in just yet.
“If it was my house, I would wait until next year when all the buyers come off the sidelines when interest rates come [down], I’m going to get a lot more from my house than I would get right now.”
Diana Kelly Levey contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: What Does Barbara Corcoran Predict for the Housing Market in 2026?
