Homeowners aged 62 and older saw a 0.5% increase in their housing wealth, surpassing last quarter’s record high.
Seniors held an additional $32 billion in the equity of their homes, according to the National Reverse Mortgage Lenders Association. Senior housing wealth amounted to $7.17 trillion, up from $7.14 trillion in Q1 2019.
The increase was driven by a 0.5%, or $47 billion, gain in the value of senior homes, offset by a 0.9%, or $14.6 billion, increase of senior-held mortgage debt.
The NRMLA/RiskSpan Reverse Mortgage Market Index grew to 258.44, beating the recorded 257.12 in the previous quarter.
"Many retired and soon-to-be-retired Americans lack the financial assets for a comfortable retirement, yet the most commonly held and valuable asset for most of them is their home," said NRMLA Executive Vice President Steve Irwin. "Responsible use of home equity may be the best option that ensures they have food, medicine and other basics for a comfortable retirement."