Existing home sales were up 3.4% month-on-month in October, showing their first year-on-year gain in more than three years.

Corcoran Group founder, Shark Tank investor and real estate expert Barbara Corcoran says the surge in home sales doesn't surprise her.

“There are more homes on the market, so there are 25% more choices for the buyer who comes out and looks,” Corcoran told Fox Business on Thursday. “Besides, the buyers themselves are used to the rates being what they are, and they just got tired of waiting.”

Related: You have one month left to buy a home, according to Barbara Corcoran. Here's why.

Since Friday, mortgage rates are up to 6.96% for 30-year fixed mortgages, an increase of 0.05% from last week. Corcoran said that if the rate falls somewhere in the range of 5% to 5.99%, it would have a noticeable effect on the market.

“Anything 5% ahead is going to make this market go ballistic,” Corcoran said. “But now you're already seeing signs of it (lower rates) in the last month.”

Corcoran predicted last month in an interview with The entrepreneur that mortgage rates will drop to the 5% limit within the next year.

She said most potential sellers can settle for much lower rates than that, under 3%, so getting them to sell can be difficult.

Related: Barbara Corcoran says this is the one question to ask before selling your home

According to a report issued by the National Association of Realtors (NAR) earlier this monthfirst-time buyers were older than ever, with the median age set at 38 this year. The median age of home buyers overall was 56, up from 49 last year.

Corcoran told Fox Business that higher ages are due to higher interest rates, which lock out younger buyers with less home equity.

“I say my prayers at night and pray for lower interest rates,” she said.

of NAR The report showed that first-time homebuyers made up a historic low of about 25% of all total homebuyers, down from 32% in 2023.

Repeat home buyers dominated sales: They could afford to make larger down payments, with the group's average down payment percentage at 23%. Nearly a third, 31%, paid for a new home with all the cash.

First-time home buyers have had to adapt to these conditions. This year they gave a typical down payment of 9%, the highest rate since 1997.

Related: Barbara Corcoran needed to make job cuts. That's why she fired her mother first.