Personal finance guru Dave Ramsey is urging potential homebuyers not to be discouraged by rising interest rates, saying that current market conditions might actually favor them. In a recent email to TheStreet, Ramsey argued that for those who are financially prepared, “now’s the time” to jump into the housing market.
Ramsey acknowledges that higher interest rates are a concern, but emphasizes other factors to consider. He cites data suggesting a potential slowdown in home price growth, along with a rise in housing inventory compared to last year. This translates to less competition for buyers, potentially leading to a more balanced market.
“High home prices aren’t likely to change drastically anytime soon,” Ramsey said in the email. “So, if you’re ready to buy, with a down payment and emergency fund in place, don’t wait on the sidelines.”
Ramsey’s message comes with a big caveat: financial preparedness is key. His signature approach emphasizes being debt-free (excluding mortgages) and having a fully-funded emergency fund before even considering a down payment. Ramsey believes this financial discipline sets buyers up for long-term success and avoids them being stretched thin by unexpected costs.
Should interest rates drop significantly in the future, Ramsey suggests homeowners can always refinance their mortgages to secure a lower rate.
For those still on the fence, Ramsey’s advice is clear: prioritize financial readiness, and if you’re prepared, don’t be afraid to take advantage of the current market dynamics. But remember, buying a house is a long-term commitment, so ensure you’re in it for the long haul.
