WASHINGTON, D.C. – October 15, 2013 – (RealEstateRama) — The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) rose in Q2 2013 by 3.1 percent to 160.1, its highest level since Q4 2008.
The $101 billion second quarter increase in senior home equity was the biggest quarterly increase since Q4 2005 and was driven by an estimated $98 billion increase in the aggregate value of senior housing and a $3.4 billion decline in mortgage debt held by seniors.
The second quarter was the fifth consecutive quarter in which the index has risen, but the $3.34 trillion estimated aggregate value of home equity owned by seniors eligible for reverse mortgages is still 17 percent below its peak level of $4.0 trillion in Q4 2006.
The senior housing value estimate is based on the Federal Housing Finance Agency’s Q2 2013 all-transactions Indices, which saw housing values increase in 73 percent of the 412 MSAs covered by RiskSpan.
The index has tracked reverse mortgage market opportunity since 2000 by analyzing and reporting on trends in senior home values and home equity levels and is updated on a quarterly basis.
Members can view PDF slides, which helps illustrate these trends by clicking here.