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Barbara Corcoran’s Real Estate Trade

Barbara Corcoran's Top Real Estate Trade

With mortgage interest rates around 3.5 percent, real estate mogul Barbara Corcoran said that the best bet is buying a vacation home.

"I would definitely buy a vacation home," she said. "It's the only sector of the market that has still not turned the corner. So if you've been dreaming about getting place in the sky, of course you have a little bit more wiggle room, but why would you wait with money being as cheap as it is?"

On "Fast Money," the star of reality TV show "Shark Tank" said that housing inventories were shrinking across the United States – and that will put upward pressure on prices.

"House prices nationwide are 12 percent more expensive than they were a year ago," she said. "Now we have, for every 6 houses you could've chosen from a year ago, now we only have four, so the shortage of houses is paramount, and it's going to shorten what you can buy."

While it's widely believed that the Federal Reserve will continue its monetary policy through 2015, keeping interest rates low, that was not necessarily a certainty.

"Nobody knows if you have time. All I know is mortgage rates have just started to inch up," Corcoran said. "They're at 3 percent, which is the cheapest money you're probably ever going to see."

Trader disclosure: On Feb. 21, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long ADP; Jon Najarian is long ADP CALLS; Jon Najarian is long GSK CALLS; Jon Najarian is long BWLD CALLS; Jon Najarian is long CSCO PUTS; Jon Najarian is long ARUN; Jon Najarian is long HPQ; Dan Nathan is long BBRY FEB/APR 14 PUT SPREAD; Dan Nathan is long XCO; Dan Nathan is long SDS; Dan Nathan is short SPY; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is short PAY; Karen Finerman is long M; Karen Finerman is short JCP; Karen Finerman is short SPY; Karen Finerman is short IWM; Brian Kelly is long Gold Futures.