Homeowners 62 and older saw their housing wealth grow by 3.98 percent or $405 billion in the fourth quarter to a record $10.6 trillion from Q3 2021, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) rose in Q4 2021 to 370.56, another all-time high since the index was first published in 2000. The increase in older homeowners’ wealth was mainly driven by an estimated 3.7 percent or $452 billion increase in home values, offset by a 2.3 percent or $47 billion increase in senior-held mortgage debt.
NRMLA President Steve Irwin, said: “In just a few days, we’ll be celebrating Older Americans Month. The theme will be Age My Way. To help ameliorate the risks and concerns surrounding the ability of homeowners to age their way, it is critical that housing wealth is carefully and responsibly considered when developing a comprehensive retirement plan. For many, housing wealth is indeed their greatest asset, and tapping that equity, under the right circumstances, will enable a secure path to aging security.