A 3.1% national increase in reverse mortgage endorsements this year has masked volatility somewhat in the top ten states for reverse mortgages, notes Reverse Market Insight in its latest newsletter.
The “volatile” rate changes seen in some states, counties, and cities have led to the top 10 states’ growth rate remaining slightly above the national average, at 3.6%. That discrepancy, RMI notes, is likely since five of those states had endorsement rate increases in the double digits.
Source: Reverse Market Insight
North Carolina’s growth rate shot up 45.9%, while Florida, on the other hand, continues its downward trend with a 26.1% decline, the largest decrease in the top ten states. Pennsylvania, New Jersey, Texas, and Virginia all posted double-digit gains, while Maryland and Washington join Florida with diminishing endorsement rates.
The newsletter also mentions the way states with high home values have benefitted from the $625,500 HECM loan limit set in 2009, as California, Washington, D.C., and New York have significant amounts of endorsements above the previous 2008 limit of $417,000. RM Insight says that given the uncertainty of the lending limit, which may return to 2008’s level in October, there’s potential for another shake-up in state volumes for the upcoming year.
View the newsletter here.
Written by Alyssa Gerace