With the peak homebuying season underway, both potential buyers and sellers are hoping to cash in on a great deal—even if mortgage rates are still high.
The average 30-year fixed mortgage rate rose to 6.46% last week, and mortgage applications fell 10.4% in response, according to the latest weekly survey, leaving many to wonder if jumping into the game right now is a good idea.
But to hear financial expert Dave Ramsey tell it, if you don’t start making moves and soon, you’ll likely go another year without landing in a new home.
Buyers and sellers need to ‘plan’ for the spring season
“If you’re guessing at the ‘perfect’ time to buy or sell a home, you might miss it,” Ramsey wrote on Facebook, emphasizing that playing the waiting game only weakens your position, no matter what side you’re on.
“If you’re buying, now is the time to get in while inventory is growing before competition and prices peak later this spring,” Ramsey wrote on his social media page.
His advice is supported by Realtor.com® data. According to the March 2026 housing report, inventory and time on the market have consistently increased for over two years. Additionally, median list prices have now decreased year over year for five consecutive months.
Meanwhile, with price cuts down, sellers are starting to come to market at more realistic prices rather than listing high and cutting later. Ramsey agrees that this is a good strategy
“If you’re selling, this is your moment. Strong buyer demand can mean better offers if you price it right,” he added. “I’ve watched this market for decades; the people who win aren’t the ones who guess. They’re the ones who have a plan.”
Another tip? Pause saving for your future to buy a house now
Ramsey is known for his strong, no-nonsense advice to homebuyers and sellers to stop planning for the future in order to get your dream house today.
“If you’re planning to buy a house in the near future, it’s okay to hold off on your retirement savings and put that money toward your down payment,” he advised in a blog post.
Most financial advisors would disagree with Ramsey, noting that a pause on contributions would mean losing out on compound interest as well as employer contributions.
But Ramsey notes that in hard economic times, if this is money you’re saving anyway, you might as well use it to buy a home, which is equally investing in your future.
However, he warned that this strategy should only be for the short-term goal of racking up enough funds for the down payment
“Make sure this is only a quick detour (like a year or two)—not a five-year pause,” he warns.
He also advised not to pull money directly out of your retirement savings. Whatever money is already in your 401(k) or IRA should stay put.
“Don’t borrow from or cash out your retirement accounts to speed up your down payment savings,” he writes. “Not only will you get hit with taxes and early withdrawal penalties, but you’ll also tank the long-term growth of your retirement savings—costing you hundreds of thousands of dollars at retirement.“
The down-payment math
The age-old question of how much money one needs for a down payment has changed dramatically in the last decade.
Historically, real estate experts advised potential buyers to have 20% available for a down payment in order to secure a home. But given how competitive the market has become due to low inventory—and how high the mortgage rates have become due to inflation—most people find 20% completely out of reach.
And even if they can come up with 20%, more often than not, a bidding war could cause the asking price for the home to skyrocket, putting it completely out of reach.
In general, your mortgage payment should never exceed 25% of your monthly income, according to experts. And Ramsey adds that you should keep that in mind as you’re saving for your down payment, as well.
“Like with any task that seems impossible, try breaking down saving for a house into smaller steps,” Ramsey wrote. “For example, saving a $40,000 down payment might feel impossible until you break it down into smaller monthly goals. If you pushed yourself to save $1,700 each month for 24 months, you’d hit that $40,000 goal.”
But remember, it’s not just a down payment you need to save for; it’s also closing costs and potential repair needs as well.