Senior home equity across the U.S. has risen to its highest level since September 2007, according to the index that tracks it, giving rise to reverse mortgage potential among those who have built that equity over time.
The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) reached 183.87 in the third quarter of 2014, marking the 10th straight quarter of growth for the index, which dates back to 2000. The total home equity held by homeowners who are 62 and older is $3.84 trillion, according to the research from the National Reverse Mortgage Lenders Association and RiskSpan—up $97 billion in the quarter.
The data shows a steady increase, both in terms of quarterly rise as well as year-over-year increase. The third quarter uptick was a 2.53% increase over the previous quarter, and a near 11% increase over the third quarter of 2013.
Senior mortgage debt has held steady over the last five quarters, at $1.08 trillion, the research shows; up slightly from early 2013, and down slightly from 2012.
Written by Elizabeth Ecker