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Churchill Mortgage - Buying a house when mortgage interest rates are high - Dave Ramsey

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Author: Churchill Mortgage
Categories: Real Estate
Tags: real-estate
Views: 2 · Last viewed: 2026-10-15 07:50 UTC

Short Summary

Main recommendation: If you're considering buying a home, buy now rather than waiting for mortgage rates or home prices to fall, because the speaker expects prices to keep rising and rents to keep climbing, while a fixed-rate mortgage locks in your largest monthly expense. The speaker also argues that high rates feel worse only in comparison to the historically low rates of recent years, and that rates can be refinanced later if they drop.

Key Points

  • Mortgage rates have risen to almost 7% on a 30-year fixed, up from the 3% range, though the speaker notes that 7% is low compared to the 9%, 10%, 11%, and 12% rates he recalls from earlier decades.
  • The speaker argues that people who bought homes will become more wealthy over the next three years than people who rented, because rents tend to rise nearly every year.
  • A fixed-rate mortgage keeps the payment steady while rent increases eat into renters' disposable income.
  • Some markets, including Austin, Texas, Nashville, Tennessee, Dallas, Texas, and Phoenix, Arizona, have cooled slightly in the past four or five months, but the speaker says prices are settling rather than crashing.
  • The speaker says the current market is not comparable to 2008.

Details Worth Noting

  • Concrete instructions: If you are buying, don't wait for rates or prices to drop; the speaker says rates will not come down any minute and prices are expected to go up, so buy now while few buyers are competing.
  • Concrete instructions: If you are selling, plan for about 90 days to sell and negotiate your price, which the speaker calls normal and consistent with most of real estate history.
  • Concrete instructions: If rates fall later, refinance the mortgage to replace the higher loan while keeping the purchase price you locked in.
  • The speaker acknowledges that the 2008 crash is not repeating and that a slight dip in some cities is not a crash.
  • The speaker warns that wealth inequality based on home ownership will grow over time.

Bottom Line

The speaker's core argument is that the cost of waiting likely exceeds the cost of a higher rate, so a prospective buyer who can afford a home should act now and refinance later if rates fall.