In an interview with Bloomberg TV, Shark Tank investor Barbara Corcoran has issued a warning to potential homebuyers. According to her insights, waiting for lower mortgage rates may result in paying more for the desired property. She emphasized that there is currently a significant amount of demand waiting for these reduced interest rates.

Previously, Corcoran had predicted that home prices could potentially surge by up to 10% once mortgage rates reach 6%. Now, with the decline in mortgage rates gaining momentum, she cautions that sidelined buyers should not expect an affordable market. Instead, she advises them to enter the market without delay.

Corcoran believes that when mortgage rates drop by just one more point, it will trigger a surge of "tremendous demand" from buyers. This influx of demand will only exacerbate the existing affordability challenges.

"You need one more point to bring everybody out into the market," she stated. "And what's going to happen is you're going to pay more for the house."

The 30-year mortgage rate recently dropped to 6.47%, marking its lowest level since May 2023, according to data from Freddie Mac. Mortgage rates have remained elevated due to tighter monetary policy, which has deterred both buyers and sellers from actively participating in the market.

Moreover, consumers have been hesitant to enter the market due to insufficient housing supply. This lack of supply has contributed to escalating price appreciation. In the second quarter of this year, the median single-family home and condo price reached an all-time high of $360,000, as reported by ATTOM.

The same report revealed that housing costs, including mortgage payments, insurance, and property taxes, have also reached a record high of $2,114.

Despite these challenges, Corcoran advises potential buyers to seize the opportunity to purchase a property now. She suggests that buyers should not delay their decision in hopes of lower mortgage rates.

She emphasized this point in March when she predicted that home prices could rise by 8%-10% once mortgage rates reach 6%. Therefore, buyers should act swiftly to secure their desired property.

"If you have any way of getting cash together and getting into the market and buying a house and getting out of a rental, which is tempting to keep because it's a little cheaper, don't do it," she advised. "Buy yourself a house."

Bank of America echoes Corcoran's sentiments, warning against attempting to time the market. They suggest that high mortgage rates can always be refinanced once these interest rates decrease.

In conclusion, potential homebuyers should be aware of the potential risks associated with waiting for lower mortgage rates. The surge in demand triggered by these reduced rates may lead to increased competition and potentially higher home prices. Therefore, it is advisable to enter the market promptly to secure the best possible deal.