Homeowners aged 62 and older in the US saw their housing wealth increase by $600bn in the second quarter of this year, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index. The increase takes the total value of housing wealth for US seniors to $14trn.
The growth was largely attributable to an estimated 3.97% (or $624.6bn) increase in senior home values, which was offset by a 0.89% (or $20.9bn) increase in senior-held mortgage debt. Increasing house prices drove the index’s upward trend, mitigated to some extent by a corresponding modest increase in mortgage debt held by seniors.
“Senior home equity levels reached $14trn for the first time, which is an impressive milestone,” said NRMLA President Steve Irwin.
“Housing wealth represents a critical, yet underutilised resource, that can provide greater financial security for America’s ageing population.”
