WASHINGTON, D.C. – January 13, 2015 – (RealEstateRama) – In the third quarter of 2014, the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) that measures senior home equity rose to its highest level since the third quarter of 2007. The index finished the period at 183.87.
A $94.6 billion increase in senior home equity in the third quarter was driven by an estimated $97.8 billion increase in the aggregate value of senior housing offset by a $3.2 billion increase in mortgage debt held by seniors. The third quarter of 2014 was the tenth consecutive quarter in which the index has risen, and the $3.84 trillion estimated aggregate value of home equity owned by seniors eligible for reverse mortgages is now just 4% below its peak level of $4.0 trillion in Q4 2006.
The current levels represent a 30 percent recovery since the post-Recession trough reached in Q2 2011, when seniors’ equity levels had fallen to an estimated $3.0 trillion. The senior housing value estimate is based on the Federal Housing Finance Agency’s Q3 2014 all-transactions Indices, which showed quarter-over-quarter increases in housing values for 82 percent of the 412 metropolitan statistical areas covered by RiskSpan.
To view NRMLA’s press release, please click here.