RMMI: Senior Home Equity Surges By $83.5B

RMMI: Senior Home Equity Surges By $83.5B

WASHINGTON, D.C. – March 17, 2014 – (RealEstateRama) — Driven by a $83.5 billion increase in senior home equity, the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) rose in Q4 2013 by 2.4% to 169.8, its highest level since Q1 2008.

The rise in senior home equity resulted from an estimated $84.1 billion increase in the aggregate value of senior housing slightly offset by a $600 million increase in mortgage debt held by seniors.

The fourth quarter was the seventh consecutive quarter in which the index has risen, but the $3.54 trillion estimated aggregate value of home equity owned by seniors eligible for reverse mortgages remains 12% 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 Q4 2013 all-transactions Indices, which saw housing values increase in 63% 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 slides that help illustrate these trends by clicking here.

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