The amount of equity America's senior citizens have in their homes continues to decline, although it is still well above what they had 11 years ago.
According to the NRMLA/RiskSpan Reverse Mortgage Market Index, seniors have $3.2 trillion of home equity at the end of the first quarter, a decline of 3% during the three-month period.
At the end of 2010, the index estimated seniors had $3.3 trillion of home equity.
The index value for the first quarter was 153.3, down from 157.7 for the fourth quarter 2010; the base index value of 100 was set for the first quarter of 2000.
Since the first quarter of 2007, senior home values have declined each quarter, with the exception of the first quarter of 2009 and the third quarter of 2010.
The most recent decline is due to the continue weakening in home price values, partially offset by mortgage debt levels falling to their lowest point since the second quarter of 2007. Debt levels have fallen for seven consecutive quarters.
When the index started in the first quarter 2000, seniors had $2.1 trillion in home equity. At the peak, in the fourth quarter of 2006, they held over $4 trillion.
Peter Bell, president of the National Reverse Mortgage Lenders Association, said "this index shows that seniors continue to have significant equity in their homes, despite modest declines in home prices."
The RMMI, issued quarterly, reflects the current value of home equity owned by seniors relative to the first quarter of 2000.
