The National Reverse Mortgage Lenders Association reported Friday that homeowners age 62 and older saw their home equity increase by a combined 3.1% to $6.3 trillion in the first quarter of 2017 from $6.13 trillion in Q4 2016.
According to the NRMLA/RiskSpan Reverse Mortgage Market Index, the growth in housing wealth for retirement-aged homeowners was driven by an estimated 2.6%, or $199.3 billion, improvement in senior home values, and offset by a 0.6% increase of senior-held mortgage debt that equaled $9.2 billion. The RMMI, a quarterly measurement of home equity held by older homeowners, rose to 227.07 in Q1 2017, another all-time high since the index was first published in 2000.
“Older adults who want to stay in their own homes as they age, and we know a majority do, may find that the house that was perfect for raising a family lacks the features to support aging in place. But, instead of moving out, various modifications, such as stair-less entryways and wider bathroom door frames, can be made to accommodate new mobility and accessibility needs,” said NRMLA President and CEO Peter Bell. “The housing wealth our seniors have built up in their homes over the years, their home equity, can be used to update the family house into a space for living comfortably and independently for years to come.”
