Homeowners 62 and older saw their housing wealth fall slightly in the fourth quarter of 2022 to an adjusted level of $12.39 trillion, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) decreased slightly in Q4 2022 to 433.25, from a recalibrated* level of 434.32 in Q3 2022. This is the first drop the index has seen since 2011.
The drop was driven by a modest decline in senior home equity from a peak of $12.42T in Q3 2022 to $12.39T in Q4 2022. The decline in equity resulted from an increase of $30 billion in senior home debt while home values remained relatively unchanged due to the continued cooling of the housing market.
“Housing markets nationwide experienced unprecedented growth over the past decade. While many of these markets are starting to see declines in home values, the key takeaway here is that older homeowners are still sitting on $12.39 trillion in housing wealth that can be used strategically as part of a retirement plan to enhance retirement security,” said NRMLA President Steve Irwin.