Senior Home Equity Hits New Peak
June 20, 2018
The housing wealth for homeowners ages 62 and older grew to $6.82 trillion during the first quarter of this year, increase of $177 billion over the fourth quarter of last year, according to the National Reverse Mortgage Lenders Association (NRMLA).
The NRMLA/RiskSpan Reverse Mortgage Market Index increased to 244.73 in the first quarter, the highest level recorded since the index debuted in 2000. With an estimated $182 billion increase in home values—a 2.2 percent rise—gains in senior housing wealth were offset by a 0.3 percent, or $5.4 billion increase, in senior-held mortgage debt.
“The numbers tell a reassuring story about housing wealth in an era when large numbers of retirees and near-retirees fear running out money before the end of their lives,” said NRMLA Executive Vice President Steve Irwin. “Homeowners 62 and older can responsibly tap some of the home equity they’ve built over to time to stabilize wobbly retirement stools and support their longevity. One way to do that is with a reverse mortgage, which is the only mortgage that was designed for older people who are either no longer working or transitioning out of the full-time workforce, and who want to stay in their own home for as long as possible.”