The National Reverse Mortgage Lenders Association (NRMLA), through the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI), finds that homeowners aged 62 and older saw their home equity increase by a combined 3.1% to $6.3 trillion in the first quarter of 2017 (Q1’17) from $6.13 trillion in Q4’16.
According to the 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 was offset by a 0.6% increase in 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 Q1’17 – 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 stairless entryways and wider bathroom doorframes, can be made to accommodate new mobility and accessibility needs,” says 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.”