PR Newswire
CHICAGO, June 5, 2023
CHICAGO, June 5, 2023 /PRNewswire/ - The latest BMO Real Financial Progress Index reveals current mortgage rates are keeping many Americans from buying a home with 64 percent saying they are waiting on rates to drop before entering the market. Adding to the rate sensitivity of buyers, only 6 percent of Americans who say they plan to purchase a home soon plan on doing so this summer.
Compared to a year ago, homebuyers are dealing with much higher costs of ownership due to a combination of elevated mortgage rates, persistently high home prices and limited inventory, leaving housing affordability near the most challenging levels in more than three decades as a result of Federal Reserve rate hikes, according to BMO Economics.
BMO's survey also found Americans' perceptions of the economy has further affected their homebuying plans:
"Homeownership has traditionally been one of the best ways to secure long-term financial gains, build equity and achieve real financial progress," said Thomas Parrish, Head of U.S. Retail Lending Product Management at BMO. "It's crucial, especially in higher-rate environments, for Americans to talk to a mortgage advisor who can help prepare buyers for the homebuying process, work to determine how much a person can afford and clear up the misconceptions about the many paths to homeownership that exist. At BMO, our goal is all about sustainable homeownership, so having a greater understanding of all the expenses that come along with owning and seriously thinking about your budget is integral to long term success."
The survey also highlights different financing strategies Americans intend to use for their home purchases:
"Most Americans understand how critical it is to establish a financial plan and our survey found three in four have set personal goals around money," said Paul Dilda, Head of U.S. Consumer Strategy at BMO. "Unfortunately, only 32 percent of Americans said they were meeting with their banker or financial advisor to help reach those goals. Regularly doing so will help ensure a secure plan and is imperative to reaching bigger financial aspirations, such as buying a home."
BMO offers the following tips to help Americans through their homebuying journey and make real financial progress:
BMO offers budgeting and savings tools, resources, and programs that are also helpful to customers throughout their homebuying journey:
About the BMO Real Financial Progress Index
Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The index aims to spark dialogue that will help consumers reach their financial goals and to humanize a topic that causes anxiety for many – money.
The research detailed in this document was conducted by Ipsos in the United States from March 27 to April 21, 2023. A sample of n=2,500 adults ages 18+ in the US was collected. Quotas and weighting were used to ensure the sample's composition reflects that of the U.S. population according to census parameters.
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.25 trillion as of April 30, 2023. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to over 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future and more inclusive society.
Media contact:
Lucas Seiler, U.S. Personal & Business Banking
[email protected]; 312-340-8576
View original content:https://www.prnewswire.com/news-releases/bmo-real-financial-progress-index-nearly-two-thirds-of-americans-are-waiting-on-mortgage-rates-to-drop-before-buying-a-home-301842032.html
SOURCE BMO Financial Group
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