Senior homeowners, defined as those aged over 62-years-old, saw their housing wealth grow by an average of 4.91%, roughly equating $520 billion, during the first quarter of 2022 pushing the total market value upwards to a record $11.12 trillion from the fourth quarter of 2021.
This information comes to us from the latest quarterly release of the National Reverse Mortgage Lenders Association [1] (NRMLA) and RiskSpan’s [2] Reverse Mortgage Market Index (RMMI).
All-in-all, the RMMI found that the index rose in the first quarter to an all-time high of 388.83, a first in its 22 year history. The increase in older homeowners wealth was mainly driven by an estimated 4.4% or $563 billion increase in home values, offset by a 2.06% or $43 billion increase in senior-held mortgage debt.
NRMLA President Steve Irwin, said: "Inflationary fears, market volatility and concerns about a possible recession have created a great deal of anxiety for America's aging population. Now may be an appropriate time to consider the strategic use of home equity to help improve older homeowners' retirement security."
