Americans 62 years old and older now have more equity in their homes than at any time since mid-2009, according to data released by the National Reverse Mortgage Lenders Association (NRMLA).
The new information comes from the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI), which analyzes trends in the home values, home equity, and mortgage debt of homeowners 62 and older. In the fourth quarter of 2012, the RMMI reached its highest level (152.59) since the second quarter of 2009.
Over the last 12 months, the total home equity of homeowners 62 and older increased by $117 billion (3.8%), while their home values increased by $97 billion (2.3%) and their mortgage debt declined by $20 billion (-1.8%).
‘The positive trends supported by today's RMMI are good news for senior homeowners, and they contain positive signs for the American economy and housing market,’ said Peter Bell, president of the NRMLA. ‘Thankfully, the recovering real estate market continues to grow seniors' home equity, creating a valuable resource for them. Tapping into that equity is one option to help fund living expenses, home maintenance costs or health care needs in retirement.’
(Photo courtesy Buena Vista International)
