• Homebuyers that wait for lower mortgage rates will pay more for the house, Barbara Corcoran said.

• She told Bloomberg TV that there's a tremendous amount of demand waiting for lower rates.

• Previously, she said that prices could jump as much as 10% once rates hit 6%.

With the decline in mortgage rates picking up steam, sidelined homebuyers are likely anticipating a more affordable market. If that's the case, they should brace for disappointment, Barbara Corcoran told Bloomberg TV.

The "Shark Tank" star advised prospective buyers to instead enter the market now, without waiting for lower borrowing costs.

She told Bloomberg that when mortgage rates slip just one more point, it will unleash a wave of "tremendous demand" that will only add to unaffordability pressures.

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

According to Freddie Mac, the 30-year mortgage rate dropped to 6.47% last week, marking its lowest level since May 2023. Rates have been elevated for years now amid tighter monetary policy, discouraging both buyers and owners from participating in the market.

Consumers have also stayed back due to a lack of both existing and new housing supply, which has contributed to runaway price appreciation. In the second quarter, the median single-family home and condo price surged to a new high of $360,000, data from ATTOM showed last month.

The same report found that mortgage payments, insurance, and property taxes also boosted housing costs to a record $2,114.

In this context, it might be tempting to think that the better time to buy will come once mortgage rates drop. But every homebuyer is thinking this, Corcoran said.

In March, she outlined that home prices could jump as much as 8%-10% once mortgage rates reach 6%. Therefore, buyers should snap up a property now, as they're likely paying costs in the form of rent, anyways.

"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 said similarly in December. "Buy yourself a house."

Bank of America similarly told Business Insider that it's a bad idea to try and time the market. It noted high mortgage rates can always be refinanced once these borrowing costs drop.

Read the original article on Business Insider