The amount of home equity owned by American seniors fell by $63 billion between the first and second quarters, the National Reverse Mortgage Lenders Association/RiskSpan Reverse Mortgage Market Index found.
The index itself is at 149.9, down 2% from the first quarter and is now at its lowest point since the second quarter of 2004.
The group estimates that those 62 or older hold $3.14 trillion in home equity as of June 30. During the quarter, aggregate senior housing values declined by 1.6% to $4.16 trillion, while senior debt outstanding was $1.02 trillion.
At the start of the year, seniors held $3.3 trillion in home equity.
NRMLA president Peter Bell said in a press release, “While the senior equity level is 22% off of its second quarter 2006 peak, the equity level of the overall population is down 38% from its first quarter 2006 peak.” He said the difference is “due to the relatively fast growth and lower mortgage debt levels of the senior population.”
RMMI measures the current value of home equity owned by seniors relative to the level observed in the first quarter of 2000.
