NRMLA: Seniors Saw Equity Increase, Mortgage Debt Decrease In Q1

Posted by Patrick Barnard on June 18, 2015 No Comments
Categories : Residential Mortgage

Homeowners age 62 and older saw the equity in their homes increase by $63.5 billion in the first quarter compared to the fourth quarter, reaching the highest level since the first quarter of 2007, according to the National Reverse Mortgage Lenders Association (NRMLA)/RiskSpan Reverse Mortgage Market Index.

The increase was fueled by an estimated $61.6 billion increase in the aggregate value of senior housing and a $1.9 billion decrease in senior-held mortgage debt, according to the report.

Seniors held about $3.96 trillion in home equity as of the first quarter – coming within 1% of its peak level of $4.0 trillion in the fourth quarter of 2006.

‘As the economy recovers and the amount of housing wealth held by older homeowners continues to grow, home equity is an increasingly valuable resource America's seniors can use to help fund their longevity,’ says Peter Bell, president of NRMLA.

According to the report, seniors have, on average, recovered about 34% of the equity lost since the peak of the Great Recession in the second quarter of 2011, when senior equity levels had fallen to an estimated $3.0 trillion.

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