BMO's Real Financial Progress Index reveals that 71% of aspiring homeowners are waiting for rate cuts before buying a home, up from 64% last year. Additionally, nearly one-third of prospective buyers plan to tap into their 401(k) funds to cover the costs, as reported by BMO Financial Group.

Michael Gregory, Deputy Chief Economist at BMO, stated, "In light of persistent strength in the U.S. economy, as well as stubborn underlying inflation, the market has been pushing its expectation for Fed rate cuts into the autumn."

Thomas Parrish, Head of U.S. Retail Lending at BMO, emphasized the importance of engaging a mortgage advisor during high-rate periods, stating, "It's critical... for customers to engage a mortgage advisor who can guide potential buyers and sellers through the homebuying journey."

The survey also highlighted Americans' concerns about homeownership affordability, with Paul Dilda, Head of Consumer Strategy at BMO, underscoring the significance of creating a financial plan: "Creating a budget is not just about managing expenses; it's about taking control of your financial future."

Despite 74% of Americans setting financial goals, only 32% have a written financial plan, and 40% set a yearly household budget. Housing costs are identified as a significant barrier to financial progress, with 81% expressing financial anxiety.

BMO provides tips to help customers make real financial progress and navigate rising costs of living. The bank also offers budgeting and savings tools, resources, and programs to support customers throughout their homebuying journey.

Launched in February 2021, the BMO Real Financial Progress Index aims to gauge consumers' feelings about their personal finances and their progress. The index seeks to facilitate discussions to assist consumers in achieving their financial goals.

The research for the index was conducted by Ipsos in the United States from February 28 to March 18, 2024, with a sample of 2,505 adults. BMO Financial Group, the eighth largest bank in North America, aims to drive positive change and progress for a thriving economy, sustainable future, and inclusive society.