BMO Index: Only 14% Plan Home Purchase, 51% Waiting on Rate Cuts
Only 14% of non-homeowners plan to buy within a year, versus 17% in 2025, and 51% await further rate cuts before entering the market. The average first-time buyer age has climbed to 40 and 65% expect their first purchase to be a 'forever home,' showing longer-term lending needs.
1. Declining Purchase Intent and Rate Sensitivity
BMO’s index shows that only 14% of non-homeowners plan to purchase a home within the next year, down from 17% in 2025, while 51% of prospective buyers are delaying until borrowing costs fall further and just 17% began house hunting after recent rate cuts.
2. Shifting Demographics and Forever Home Demand
The average age for first-time buyers has risen to 40 compared with 28 in the early 1990s, and 65% of buyers expect their initial home to be their last, with 66% of Millennials and 75% of Gen Z homeowners valuing multipurpose layouts for caregiving or rental income.
3. Lending Implications for BMO
With 74% of Americans viewing homeownership as a major life goal but 55% of non-homeowners calling it unattainable, BMO may face pressure to develop financing solutions tailored to delayed buyers, longer-term mortgages and products supporting rental income generation.