Coming off a very strong month for reverse mortgage endorsements in October, industry analyst Reverse Market Insight delved into one state in particular, to examine trends there: Nevada.
While endorsements nationwide were up 29% in October—an uptick that outpaced the two previous Octobers and October 2011—endorsements in Nevada were also up by nearly the same measure, at 25%, according to RMI’s report.
Examining some of the market trends in Nevada, RMI found that the zip code within Nevada with the highest reverse mortgage loan growth also had a median household age of 62 and more than double the average state income in Nevada.
That zip code bucks the trend somewhat, RMI notes, in that in other zip codes showing growth in Nevada, home values are lower on average, as are incomes, compared to zip codes that are losing reverse mortgage volume.
“The same story exists on the income side,” RMI writes, “with the declining zips averaging 34% higher median household income than the state compared with 9% for the growers.”
By state, California still ranks the No. 1 state by volume for reverse mortgages, with 7,512 loans year to date. California is followed by Texas and Florida, each hovering at just over 3,100 loans per state, and then New York and Pennsylvania.
Written by Elizabeth Ecker