WASHINGTON, D.C. – April 1, 2013 – (RealEstateRama) — Senior households now have more equity in their homes than at any time since mid-2009, according to data released by NRMLA.
The new information comes from the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI), which analyzes trends in the home values, home equity, and mortgage debt of homeowners 62 and older. The RMMI is updated quarterly and tracks back to the start of 2000.
Over the last 12 months, senior home equity increased by $117 billion (+3.8 percent), home values grew by $97 billion (+2.3 percent) and mortgage debt declined by $20 billion (-1.8 percent).
In the fourth quarter of 2012, the RMMI reached its highest level (152.59) since the second quarter of 2009. After falling to start 2012, the RMMI increased slightly in the second quarter before showing significant growth in the third and fourth quarters.
“In the second half of last year, the RMMI had its strongest two quarters of growth since early 2006,” said Allen Jones, managing director of RiskSpan, the analytics firm which designed and manages the RMMI. “Senior home equity increased by $50 billion between the third and fourth quarters of 2012, driven largely by the increase in the aggregate value of seniors’ homes.”
To view the full press release and graphics, please click here.