As of February 19, 2026, mortgage rates have further declined, thereby enhancing homebuying affordability. The average rate for a 30-year fixed-rate mortgage (FRM) fell to 6.01%, down from the previous week’s 6.09% and significantly lower than the 6.85% average recorded a year prior, according to Freddie Mac. This decrease not only benefits prospective buyers but also strengthens the financial standing of existing homeowners. The number of refinancing applications has doubled in the past year, allowing many recent buyers to potentially save thousands on their annual mortgage payments.
Bestselling author and financial advisor Dave Ramsey emphasizes the advantages of 15-year fixed-rate mortgages, which averaged 5.35% as of February 19, compared to 5.44% the previous week and 6.04% a year ago. He suggests that, although these loans come with higher monthly payments, they allow borrowers to pay off their mortgage in half the time, locking in lower interest rates for the duration of the loan.
Ramsey encourages prospective homebuyers to get preapproved for their mortgages to streamline the purchasing process. He advises against relying solely on prequalification, which may lead to overborrowing. He underscores the importance of adhering to the “25% rule,” ensuring that housing costs remain within 25% of monthly take-home pay to avoid financial strain.
Furthermore, Ramsey highlights the importance of discerning between essential features and luxuries when searching for a home. Buyers should identify nonnegotiable needs while remaining open to desirable attributes that enhance a property.
Why this story matters: Lower mortgage rates are increasing homebuying affordability at a crucial time in the housing market.
Key takeaway: Both prospective and current homeowners can benefit from refinancing options amid decreasing mortgage rates.
Opposing viewpoint: Some financial experts, like Dave Ramsey, argue that shorter-term loans, such as 15-year mortgages, are more advantageous despite higher monthly payments.
