Americans 62 years old and older saw the equity in their homes increase by $125.2 billion in the second quarter, the largest quarterly increase in equity since the third quarter of 2005, according to the National Reverse Mortgage Lenders Association (NRMLA)/RiskSpan Reverse Mortgage Market Index.
In fact, as of the second quarter, seniors had more equity in their homes than at any time since early 2008, according to the index, which tracks back to the start of 2000.
The index – which measures trends in the home values, home equity and mortgage debt of homeowners 62 and older – as of the second quarter had reached 178.91, its highest level since the fourth quarter of 2007.
As of the second quarter, the collective home equity of Americans 62 and older had grown by more than 22%, to a total of $3.73 trillion, since the second quarter of 2012, according to the NRMLA.
Although home price appreciation has slowed since the start of 2014, home prices have nevertheless continued to rise on a month-over-month basis in most areas of the country.
As of the second quarter, Americans 62 and older held $1.08 trillion in mortgage debt. The NRMLA says this figure has held steady over the past three quarters. Senior mortgage debt peaked at $1.143 trillion in the fourth quarter of 2009.