Homeowners 62 and older saw their housing wealth grow by 0.3%, or $24 billion, in the third quarter to a record $7.19 trillion from Q2 2019, the National Reverse Mortgage Lenders Association reported Tuesday in its quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The RMMI rose in Q3 2019 to 259.19, another all-time high since the index was first published in 2000. The increase in senior homeowners’ wealth was mainly driven by an estimated 0.5%t or $40.7 billion increase in senior home values, offset by a one percent or $16.5 billion increase of senior-held mortgage debt.
“Research suggests that as we age, Americans will spend more of our hard-earned retirement assets on health care, such as insurance, prescription drugs, in-home care and other services that help us remain independent,” said NRMLA’s President Steve Irwin. “A retirement plan that includes the responsible use of home equity may be the best option that can help ensure healthcare spending doesn’t become a financial burden for many retired couples.”
