Bestselling personal finance author and radio host Dave Ramsey has a surprising message for Americans considering buying a home.
Mortgage rates have been higher than expected in 2026. As of Sept. 3, Freddie Mac’s average 30-year mortgage rate was 6.71%, putting it at over 6.5% for eight straight weeks.
Home prices are also high. The average sales price of houses sold in the U.S. in Q2 2026 was $502,700, according to the Federal Reserve Bank of St. Louis.
Dave Ramsey is known for his tough-love approach. He often warns people against risky purchases and reprimands callers after they tell him about what he considers major, unwise financial decisions.
But even with today’s high mortgage rates and housing prices, Ramsey warned that waiting to buy could still be a mistake — provided you can actually afford a home now.
“For starters, experts believe home prices will continue to rise for the next two years (at least),” Ramsey wrote for Ramsey Solutions. “So if you try to wait to buy until home prices go down, you might be stuck waiting a long time.”
Fannie Mae predicts home prices will keep rising
Recent housing data support Ramsey’s expectation that home prices will continue rising. The government-sponsored enterprise (GSE) Fannie Mae published its Q3 2026 Home Price Expectations Survey on Aug. 26.
In this survey, Fannie Mae predicts that home prices will increase by 2.5% by the end of 2026. It then projects annual price growth of 2.2% in 2027 and 2.7% in 2028.
Home prices generally rise over the long term, so Fannie Mae’s forecast isn’t unusual. Still, even modest price increases can matter to buyers who are deciding whether to purchase now or wait.
“Waiting for a lower interest rate can actually cost you more if home prices keep climbing while you sit on the sidelines,” Ramsey wrote.
Dave Ramsey says waiting for lower mortgage rates could backfire
To show how high home prices can offset lower mortgage rates, Ramsey gives an example of someone who wants to buy a specific house that costs $300,000. The person would pay a 7% mortgage rate, so they wait a year for mortgage rates to decrease.
In this example, mortgage rates fall from 7% to 6%, but because houses generally become more expensive over time, the home price increases by 5% to $315,000 over that same year.
“So, even though your interest rate is a little lower, you’re now borrowing $15,000 more — and you’ve spent another year paying rent instead of building equity,” Ramsey writes.
“The small monthly savings from a 1% lower rate usually won’t make up for a bigger loan on a pricier house,” he continued. “A better rate on a more expensive home isn’t the win it sounds like.”
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This scenario assumes that mortgage rates will drop over the next year, though. Ramsey reminded readers that rates might not drop significantly in the near future.
“Mortgage rates are unlikely to drop in 2026 — and might even go up a little higher,” Ramsey wrote.
Recent forecasts also support Ramsey’s caution about waiting for substantially lower rates. The Fannie Mae August Housing Forecast projects that the average 30-year fixed mortgage rate will waver between 6.7% and 6.8% through the end of 2027.
The Mortgage Bankers Association (MBA) Mortgage Finance Forecast predicts that the average 30-year rate will hold at 6.7% through 2028.
Taken together, these forecasts suggest that waiting may not produce the cheaper borrowing conditions some buyers are hoping for.
Dave Ramsey gives 4 signs you’re ready to buy a home
Ramsey clearly stated in his article that buying a home in today’s housing market is only for people who can comfortably afford it.
He considers the following to be signs that you are financially ready to buy a house:
- You are debt-free. If you have too much debt when applying for a mortgage, the lender could deny your application or offer a loan with poor terms.
- You have a full emergency fund. “Saving up an emergency fund of 3-6 months of your typical expenses before you buy a house will make a broken HVAC unit, fridge or washing machine merely an inconvenience instead of a catastrophe,” Ramsey writes.
- You can put 5%-20% down. Ramsey says first-time buyers may put down as little as 5%, although he generally recommends a 20% down payment to avoid private mortgage insurance (PMI).
- You can afford the monthly housing payment. If you can comfortably afford it without financial stress, you might be ready to buy a home. Dave Ramsey recommends that your monthly payment be no more than 25% of your take-home pay.
Ramsey warned that waiting could be a mistake — but only if you are confident you can afford to buy a home now.
Still, you don’t have to follow his homebuying rules to a T. Speak with a real estate agent and mortgage loan officer about your options regarding down payments, debt levels, and buying a home in your local market.
Related: Dave Ramsey, Vanguard warn Americans on housing costs
