Homeowners over 62 gained $130 billion of home equity in the second quarter of 2018, taking the total to $6.9 trillion.
An analysis from the National Reverse Mortgage Lenders Association shows that the increase was mainly driven by an estimated 1.7% or $143 billion increase in senior home values, offset by a 0.8% or $12.8 billion increase of senior-held mortgage debt.
The NRMLA/RiskSpan Reverse Mortgage Market Index reached 249.37, a record high since the index was first published in 2000.
"If you consider that the typical retiree household might have one or two incomes from Social Security, a modest pension and/or limited income from low-yielding fixed-income instruments, and, perhaps, a diminished 401(k) account, then home equity becomes their greatest asset and an important resource for funding their future," said NRMLA CEO Peter Bell.
The association says that to date, 1,099,601 households have utilized an FHA-insured reverse mortgage to help meet their financial needs.
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