Senior Home Equity Reaches $4.08 Trillion, Reverse Mortgage Market Index Hits Record High
Tuesday, September 29th, 2015
The NRMLA/RiskSpan Reverse Mortgage Market Index, a quarterly measure that analyzes trends in the home values, home equity, and mortgage debt of homeowners 62 and older, reached an all-time high of 195.29 in the second quarter of 2015, surpassing the prior record of 192.03 set in Q4 2006.
On a quarter-over-quarter basis, the index rose 3.0% in the second quarter, as senior home equity increased by $117.1 billion.
"The strong gains in housing wealth among America's seniors are an encouraging economic indicator for the millions of boomers who weathered the recession on the cusp of their retirement years," said NRMLA President Peter Bell. "The home equity they've worked so hard to build up can serve as a valuable financial management tool for years to come."
The increase in senior home equity relative to the first quarter was driven by an estimated $122.8 billion increase in the aggregate value of senior housing, which was offset by a $5.7 billion increase in senior-held mortgage debt.
The second quarter of 2015 was the thirteenth consecutive quarter in which the index has risen, and the current estimate of $4.08 trillion for the aggregate value of senior home equity represents a 38% recovery from the post-Recession trough in Q2 2011, when senior equity levels had fallen to an estimated $3.0 trillion.
The RMMI is updated quarterly and tracks back to the start of 2000. Release dates for 2015 – 2016 are:
Q3 2015: 12/22/2015
Q4 2015: 3/22/2016
Q1 2016: 6/21/2016
Q2 2016: 9/20/2016
Q3 2016: 12/20/2016