Senior homeowners saw an increase in their housing wealth of 1.4 percent between Q2 and Q3 2018. This, according to the National Reverse Mortgage Lenders Association’s quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) on Tuesday.
The 1.4 percent increase results in a gain of $97 billion to senior home wealth over the second quarter, with the RMMI rising to 251.57. This represents another all-time high for the index since it began publication in 2000. The release of the RMMI attributes the gain to, “an estimated 1.3 percent or $115 billion increase in senior home values and offset by a 1.1 percent or $17.4 billion increase of senior-held mortgage debt,” said the accompanying statement.
RiskSpan, the data analysis firm that partners with NRMLA for the release of the RMMI, determines the quarterly index by comparing senior home value gains against rates of senior mortgage debt. Over the course of Q3, seniors saw an increase of 1.4 percent in the values of their homes and a 1.2 percent increase in their mortgage debt.
“At a time when we’re seeing stock market volatility and the potential for a mild recession in the near future, it’s the perfect time for families to gather and take stock of their retirement resources and make necessary adjustments to ensure continued financial security,” said Peter Bell, President and CEO of NRMLA in a statement accompanying the data.
“Housing wealth should be considered with other financial assets,” he said.
Written by Chris Clow