Kevin O’Leary, also known as “Mr. Wonderful” from “Shark Tank,” claims the U.S. housing market is stagnant due to high mortgage rates. O’Leary states the market won’t improve unless rates drop to 5.5%. He doesn’t expect the Federal Reserve to cut rates, citing tariff uncertainty as a key factor.

Companies absorbing costs due to tariff uncertainty may pass them on to consumers, potentially leading to inflation. The Fed is concerned about this, causing them to hold off on rate cuts. O’Leary believes the Fed is waiting for more clarity before making any moves.

O’Leary emphasizes that with mortgage rates above 7%, the housing market has slowed down significantly. He believes rates need to fall to around 5.5% to revitalize the market. However, he expresses doubt that this change will occur, impacting first-time buyers who may have to settle for smaller homes.

Read more at Yahoo Finance: ‘The Housing Market Is Frozen,’ Says Kevin O’Leary. ‘Unless Mortgage Rates Drop To Around 5.5%, Housing Is Not Going To Turn’