Mortgage rates are rising again, and Dave Ramsey is warning Americans that navigating today’s housing market without professional help could be a costly mistake.
Freddie Mac chief economist Sam Khater said purchase and refinance activity has improved from a year ago, though volatility in borrowing costs continues to pressure affordability.
Rising Rates Pressure Housing Market
Higher rates are being driven by broader macro conditions, including rising Treasury yields and renewed inflation concerns linked to higher energy prices.
Against that backdrop, Ramsey cautioned that buyers and sellers face significant financial risk without expert guidance.
“Whether you’re buying or selling a house, you’re dealing with a lot of cash,” he said, adding that a single mistake in the process can cost “tens of thousands of dollars.”
He pointed to data showing that 88% of buyers and 91% of sellers use real estate professionals. Agents typically charge around 3% commission. On a $400,000 home, that amounts to roughly $12,000 per agent.
Debt And Affordability Squeeze Buyers
According to Ramsey, that cost can be justified. Agents help with pricing, negotiation, and managing complex transactions, reducing the risk of costly errors.
The warning comes as affordability pressures continue to build. Ramsey has also highlighted that rising levels of car, student loan, and credit card debt are limiting many first-time buyers’ ability to enter the market.
Recent data reflects that strain. Mortgage applications have declined, and new home sales dropped sharply in January.
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