In Just 3 Words, Kevin O'Leary Offers a Grim Outlook on Interest Rates and Inflation The "Shark Tank" star appeared on Fox Business' "Sunday Night in America with Trey Gowdy" and said it is "hard to see" mortgage rates dropping any time soon.

By Emily Rella Edited by Melissa Malamut

Opinions expressed by Entrepreneur contributors are their own.

Julia Nikhinson/Bloomberg via Getty Images
Kevin O'Leary during a House Committee on Small Business hearing in Washington, DC, US, on Thursday, Jan. 18, 2024.

"Shark Tank" star Kevin O'Leary has some predictions for people hoping to purchase a home in the current market — and it's not great news.

O'Leary Ventures Chairman and "Shark Tank" star Kevin O'Leary appeared on Fox Business's "Sunday Night in America with Trey Gowdy" to talk about the housing market and why prospective buyers shouldn't plan on prices cooling soon.

Related: Kevin O'Leary Issues Stark Warning About Real Estate Industry

Citing sky-high interest rates put in place to offset inflation, the investment expert noted that though "real estate has always been a good investment," it doesn't mean the prices will drop.

'Hard to see' rates dropping soon

"Only 12 months ago, we were thinking seven rate cuts, of which none have appeared because inflation remains rampant," O'Leary said, citing high interest rates. "It's hard to see that change. I'm not sure that's going to change at all.

O'Leary also mentioned the "weird outcome" of the pandemic, where people moved out of cities, which then caused those home prices to rise.

"The prices of those houses in rural regions went way through the roof," O'Leary said. "It's a new America. It's a digitized America, and housing is more expensive."

O'Leary's sentiments follow comments he made last fall on FOX Business's "Varney & Co" about the commercial real estate industry that was only getting "worse by the week."

Related: Kevin O'Leary Defends Elon Musk, Calls Out 'Loser States'

"Unfortunately, what we have is many of [commercial mortgages] are on the balance sheets of regional banks, up to 40% of their balance sheets. These are going to come through, rolling through refinancings over the next 18 to 30 months," he explained. "We're going to see more cracks on regional banks, and that's putting pressure on the loan books of those banks which are hitting small business."

The current target Fed rate is 5.25% - 5.50%. Mortgage rates for a 30-year loan are currently 6.99% per Freddie Mac.

O'Leary's estimated net worth as of Monday morning was $400 million.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Branding

How to Build a Strong Brand Identity for Your Early-Stage Startup

Branding might not be your first priority, but neglecting it can hurt your startup. A strong brand identity early on sets the stage for marketing success.

Science & Technology

From Data to Destiny — How AI Can Turbocharge Your Business Future

Are you ready to embrace the power of AI with trusted data? Let's transform challenges into opportunities and propel your business into the future.

Business News

Elon Musk's DOGE Is Hiring People Eager to 'Work Long Hours' to Eliminate 'Waste, Fraud and Abuse' in the Government. Here's How to Apply.

The Department of Government Efficiency is hiring U.S. citizens to help cut spending and headcounts in the federal government.

Business News

'Everyone Can Profit From It': What Is DeepSeek? China's 'Cheap' to Make AI Chatbot Climbs to the Top of Apple, Google U.S. App Stores

DeepSeek researchers claim it was developed for less than $6 million, a contrast to the $100 million it takes U.S. tech startups to create AI.

Business News

Uber's CEO Says Drivers Have About 10 Years Left Before They Will Be Replaced

Uber CEO Dara Khosrowshahi says the jobs of human drivers are safe for the next decade, but after that, another type of driver will take over.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.