During the third quarter, senior housing wealth grew from the second quarter by 0.3 percent or $24 billion to a new record high $7.19 trillion.

In what is getting to be something of a trend, housing wealth for homeowners ages 62 and higher reached a new peak in the latest NRMLA/RiskSpan Reverse Mortgage Market Index report published by the National Reverse Mortgage Lenders Association (NRMLA). During the third quarter, senior housing wealth grew from the second quarter by 0.3 percent or $24 billion to a new record high $7.19 trillion. The Index in the third quarter rose to 259.19, another peak since the index was first published in 2000. The NRMLA attributed the increase in senior homeowners’ wealth to an estimated 0.5 percent or $40.7 billion increase in senior home values, offset by a one percent or $16.5 billion increase of senior-held housing debt. “Research suggests that as we age, Americans will spend more of our hard-earned retirement assets on healthcare, such as insurance, prescription drugs, in-home care and other services that help us remain independent,” said NRMLA’s President Steve Irwin. “A retirement plan that includes the responsible use of home equity may be the best option that can help ensure healthcare spending doesn’t become a financial burden for many retired couples.” 

Source: National Mortgage Professional