WASHINGTON, D.C. – June 13, 2013 – (RealEstateRama) — The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) rose by 1.5% in the first quarter of 2013 to 155.0, its highest level since Q1 2009. The RMMI, which analyzes trends in the home values, home equity and mortgage debt of homeowners 62 and older, is updated quarterly and tracks back to the start of 2000.
The $49.5 billion increase in senior home equity was driven by an estimated $45.1 billion increase in the aggregate value of senior housing and a $4.4 billion decline in mortgage debt held by seniors.
While the index has now risen for four straight quarters, the $3.25 trillion estimated aggregate value of home equity owned by seniors eligible for reverse mortgages is still 19% 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 Q1 2013 all-transactions Indices, which saw housing values increase in 53% of the 395 metropolitan statistical areas (MSAs) covered by RiskSpan.
To view more detailed information on the RMMI, click here.