Retirement-aged homeowners saw a combined 2.8 percent increase of $170.7 billion in home equity during the fourth quarter of 2016, which increased their total housing wealth to $6.2 trillion, according to new data
from the National Reverse Mortgage Lenders Association (NRMLA).
During the fourth quarter, a 2.4 percent increase in home values for owners 62 and older helped to boost the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) to 221.75, hitting a record high for the 17-year-old index. On a year-over-year basis, the RMMI index increased by nine percent in 2016, compared to an increase of 8.6 percent in 2015 and eight percent in 2014.
“The strong RMMI in the fourth quarter of last year shows that home equity continues to be a valuable asset for homeowners 62 and older,” said NRMLA President and CEO Peter Bell. “It’s time for consumers to study what it means to have home equity and to learn about its strategic uses, including how it can be used to support retirement goals."