Housing Wealth for Seniors Reached $6.6 Trillion in Q417

Mar 28, 2018

There was mixed news in the latest housing data, as new levels were being set in today’s housing market

Housing wealth for homeowners ages 62 and older grew to $6.6 trillion in fourth quarter of 2017, an increase of $149 billion from the third quarter, according to data from the National Reverse Mortgage Lenders Association (NRMLA).

The association’s Reverse Mortgage Market Index (RMMI) rose to 238.11 in the fourth quarter, a record peak since the index was first published in 2000. On an annual basis, the RMMI increased by 8.3 percent in 2017, up from 8 percent in 2016 but down from 8.5 percent in 2015.

The NRMLA attributed the robust fourth quarter data to a $163 billion increase in home values, or two percent from the third quarter, while gains in senior housing wealth were offset by a 0.9 percent, or $13.4 billion increase, in senior-held mortgage debt.

“Today’s retirees are more likely to leave the workforce with a mortgage and other debts that can put stress on monthly cash flow,” said NRMLA President and Chief Executive Officer Peter Bell. “In these situations, financial products that convert home equity to cash could be used to pay off revolving debt from credit cards and reduce or defer monthly mortgage payments. It’s worth doing the math to find out if a mortgage refinance, home equity line of credit, or reverse mortgage loan can help increase financial security during retirement.”

Housing wealth for homeowners ages 62 and older grew to $6.6 trillion in fourth quarter of 2017, an increase of $149 billion from the third quarter, according to data from the National Reverse Mortgage Lenders Association (NRMLA)

About the author

Phil Hall

Link copied

Published

Mar 28, 2018

People On The Move

GVC Mortgage Hires New SVP, National Director Of Strategic Lending

Jim Janczy looking forward to leading growth initiatives nationwide

The Pendleton, Indiana-based GVC Mortgage has welcomed a new Senior Vice President and National Director of Strategic Lending. Jim Janczy actually began his mortgage career the same year GVC Mortgage was founded – 1996. He started as a loan officer at Bay Bank in Boston 2...

Construction

Single-family Housing Starts Remain Flat In April

National Association of Home Builders attributes levelling off to high rates and low confidence

Single-family housing starts lagged behind overall housing starts in April due to higher interest rates and lower builder sentiment, according to the National Association of Home Builders (NAHB). While the U.S. Census reported overall housing starts increased 5.7% in Apri...