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Barbara Corcoran isn\u2019t afraid of high mortgage rates, and she doesn\u2019t want you to be either. In an interview<\/a> with Bloomberg Television, the self-made real estate millionaire and Shark Tank<\/em> star said it\u2019s a waste of time to worry about rates because you have no control over them.\u00a0<\/p>\n \u201cI would say, get out there\u2026you need one more point to bring everybody out into the market, and what\u2019s going to happen is you\u2019re going to pay more for the house,\u201d Corcoran said. She continued: \u201cWait until you see what happens with prices when interest rates come down another percentage point.\u201d\u00a0<\/p>\n Her comments come as mortgage rates are sliding. In the last month alone, weekly mortgage rates<\/a> dropped to their lowest level in more than a year and daily rates<\/a> plummeted to a 52-week low, although they\u2019ve fluctuated since. Nonetheless, it is substantially better, in that it\u2019s cheaper to borrow money for a home or refinance an existing mortgage, than last year. Still, the more rates fall, in her opinion, the more people will come off the sidelines, sending prices leaping.\u00a0<\/p>\n It isn\u2019t the first time Corcoran has made this point and probably won\u2019t be the last. Earlier this year, she said<\/a> she wouldn\u2019t be surprised if home prices went up another 10% once mortgage rates come down just a percentage point.\u00a0<\/p>\n Last summer, she said<\/a>: \u201cIt\u2019s a good time to buy because the minute interest rates go down\u2014everybody\u2019s waiting for them to go down even by a point\u2014and when they do, they\u2019re going to come rushing back in the market. Prices are going to explode, and you\u2019re going to be paying more for the same house.\u201d And on another occasion, Corcoran said<\/a> she could see prices increasing between 10% to 15%.\u00a0<\/p>\n She happened to experience a world, back in the early 1980s, when mortgage rates<\/a> soared to 18%, and remained in the double-digits for roughly five years\u2014so that helps. But mortgage rates are still much higher than they were during the pandemic (at the moment, the weekly rate is 6.49%, and the daily rate is 6.58%.) Still, Corcoran knows it isn\u2019t simply mortgage rates that are keeping people from buying. Rents and home prices are high, too.\u00a0<\/p>\n \u201cI worry about it all the time on two fronts,\u201d she said, referring to the affordability crisis. \u201cRents keep going up\u2026and that\u2019s a real concern, so people can\u2019t afford the rents based on their income. And I also worry much more about people getting their piece of the American dream, buying their first house, because the starter house market is the hardest hit.\u201d<\/p>\n Rents soared during the pandemic, but they have sort of flatlined because of a boom in multifamily supply. That being said, rents are very high, and the wave of apartment supply won\u2019t last forever. On the other hand, since the start of the pandemic, the salary Americans need to buy a starter home<\/a> has almost doubled. Not to mention, renting a starter home is still cheaper than buying<\/a> one in all 50 major metropolitan areas.\u00a0<\/p>\n \u201cThere\u2019s so much competitive bidding, so much going over the price, and so much fear going around because people feel like they can\u2019t get ahead,\u201d Corcoran said. \u201cStarter prices are a real problem in America, and they\u2019re going up everywhere.\u201d\u00a0<\/p>\n And they definitely are. Whether it\u2019s the $200,000 starter home, or the $300,000 starter home, they\u2019re vanishing<\/a>.\u00a0<\/p>\n<\/div>\n\nRecommended Newsletter: <\/strong>CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n