Seniors See Their Home Equity Soar
Homes owned by seniors are seeing equity soar over their pre-recession peak. Seniors saw an estimated $140.2 billion increase in the aggregate value of their homes to a total of $5.83 trillion in the fourth quarter of 2015. That marks an all-time high, according to the National Reverse Mortgage Lenders Association/RiskSpan Reverse Mortgage Market Index.
Read more: Help Clients Find a Home for Life
“Significant gains in senior home equity are adding stability to the traditionally three-legged retirement funding stool of savings, social security, and pensions,” says Peter Bell, NRMLA president and CEO. “For retirees leaving the workplace with a defined benefit plan, home equity is a fourth leg of the stool, available to tap when needed. For the millions of seniors without a pension, home equity is a valuable resource and can be an integral part of their retirement funding strategy.”
NRMLA’s index shows an increase of 8.1 percent year-over-year in equity among seniors in 2015. What’s more, the fourth quarter senior equity value also represents a 16 percent increase from the pre-recession peak. In the fourth quarter of 2006, senior equity levels reached an estimated $5.04 trillion.
No comments:
Post a Comment