Seniors in the U.S. had about $4.08 trillion in equity in their homes in the second quarter, an increase of about $117.1 billion, or 3.0%, compared to the first quarter, according to the National Reverse Mortgage Lenders Association (NRMLA)/RiskSpan Reverse Mortgage Market Index (RMMI).
The level of equity reached an index score of 195.29 in the second quarter, surpassing the record index score of 192.03 set in the fourth quarter of 2006.
‘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,’ says Peter Bell, president of NRMLA, in a release. ‘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.
It was the 13th consecutive quarter in which the index has risen, according to NRMLA.
What's more, the amount of equity seniors have amassed represents a 38% increase compared to the low in the second quarter of 2011, when equity levels had fallen to an estimated $3.0 trillion.