NRMLA releases Q2 RMMI resultsMortgagePress.comReverse Mortgage Market Index, reverse mortgage market, slight increase in senior home values
The value of homes owned by Americans age 62 and over increased
slightly during the second quarter of 2007, but senior home equity
declined slightly, according to the Reverse Mortgage Market Index
(RMMI).
Published quarterly by the National Reverse Mortgage
Lenders Association (NRMLA), in conjunction with the Hollister Group LLC, the
RMMI measures the potential growth of reverse mortgage market
opportunity.
The RMMI showed a slight increase in senior home values to $5.09
trillion in the second quarter from $5.07 trillion in the first
quarter, but declined in outstanding senior home equity--$4.28
trillion from $4.29 trillion. The 0.1 percent quarterly decline in
senior home equity outstanding was driven by a slightly higher
increase in the estimate of existing mortgage debt held and by
Office of Federal Housing Enterprise Oversight and Federal Reserve
mild downward adjustments to first quarter data. The RMMI declined
overall to 205.1 from 205.3.
"There continues to be a substantial amount of home equity in
homes headed by consumers aged 62 and over," said Peter Bell,
president of NRMLA. "We fully expect the reverse mortgage products
to continue to take hold as previously untapped home equity value
intersects with the aging of the population over the next five to
10 years."
On average, the home equity held by consumers age 62 and over is
$230,000 and the aggregate amount of home value held increased by
$12 billion during the second quarter. "Despite the decreasing
consumer confidence and mixed economic indicators observed in the
late spring and early summer, the reverse mortgage market continues
to remain substantial both in size and in opportunity," said
Susanna Kondracki, a managing director with the Hollister
Group.
For more information, visit www.nrmlaonline.org.
