Kevin O’Leary Warns Americans to Think Twice Before Buying a Home, Says ‘You’re Screwed’ If Rates Rise: ‘Don’t Fall in Love With Being in Debt’

Investor Kevin O’Leary urged Americans to think twice before buying a home, warning that prospective homeowners should prioritize job stability and financial security before taking on mortgage debt.

O’Leary Urges Buyers to Rent Before Getting a Mortgage

On Tuesday, in a post on X, O’Leary advised Americans to consider renting before purchasing a home, allowing them to assess their neighborhood and ensure their income is stable enough to support a major financial commitment.

"Once you’re feeling very comfortable about that, and maybe you’re thinking about starting a family, then considering a mortgage might make sense," he wrote.

O’Leary emphasized that homebuyers must understand the long-term costs of borrowing, regardless of prevailing interest rates.

"Always remember that you owe money, lots of money, and you know with certainty, regardless of what interest rates are, you’re gonna pay interest," he said.

He added, "Debt is debt, and you have to pay it back."

O’Leary Warns Against Adjustable-Rate Mortgage Risks

He also warned against adjustable-rate mortgages, which can expose borrowers to higher payments when interest rates rise.

"If you go into a floating rate mortgage and all of a sudden for some reason rates do go up, you’re screwed," O’Leary said, cautioning that rising payments could put significant pressure on household finances.

He concluded by encouraging Americans to focus on eliminating debt rather than becoming emotionally attached to homeownership financed through borrowing.

"Don’t fall in love with being in debt through a mortgage. Fall in love with being debt-free," he said. "Feels way better."

Before getting a mortgage, you should consider renting for a while, get a feel for the neighborhood you’re in and make sure that your job that's providing the income to pay for your life and your mortgage is stable. Once you're feeling very comfortable about that, and maybe… pic.twitter.com/cao58c1rn3

— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) October 20, 2026

US Homebuyers Cancel Deals as Affordability Worsens

Last week, Redfin reported that 14.5% of home-purchase agreements that went under contract in September were canceled, the highest rate in its records outside the pandemic. Separately, Redfin said sellers outnumbered buyers by 62.6% in September, the largest gap in records dating back to 2013.

Earlier this month, J.P. Morgan analysts said high mortgage rates, limited housing supply and weak income growth had left U.S. housing affordability near its worst level since the global financial crisis.

Homeownership among people under 35 fell to a nine-year low of 35%, while mortgage applications hit their lowest level since 1995.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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