Senior Housing Wealth Reaches Record $7.14 Trillion
Tuesday, June 25th, 2019
Homeowners 62 and older saw their housing wealth grow by 2.7 percent or $104 billion in the first quarter to a record $7.14 trillion from Q4 2018, the National Reverse Mortgage Lenders Association reported today in its quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The RMMI rose in Q1 2019 to 257.12, another all-time high since the index was first published in 2000. The increase in senior homeowners' wealth was mainly driven by an estimated 2.4 percent or $110 billion increase in senior home values, including an estimated increase of 0.8 percent in the senior homeowning population, offset by a 1.1 percent or $6.5 billion increase of senior-held mortgage debt.
"Reverse mortgages have become an essential component for addressing a huge problem for many Americans—funding retirement," said NRMLA President and CEO Peter Bell. "More than 1.12 million families have used a reverse mortgage alongside side their 401(k)s, IRAs, savings, investments, Social Security, Medicare and Medicaid to cover life's daily expenses, so they could live more financially secure lives. As with all major financial decisions, a reverse mortgage should be part of an overall strategic plan, with input from knowledgeable professionals, and family members who may be impacted."