Homeowners 62 and older saw their housing wealth decrease by one percent in Q4 2024 to $13.95 trillion, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
Senior home equity peaked at a record $14.09 trillion in Q2 2024.
The decline in senior home equity was largely attributable to an estimated 0.7 percent (or $118 billion) decrease in home values offset by a 0.9 percent (or $21.1 billion) increase in senior-held mortgage debt.
- Riskspan noted that the decline in home equity corresponds to the seasonal downturn in home sales, which typically occurs during the winter months.
What they’re saying: “A new study from the Center for Retirement Research at Boston College estimates that 30 percent of Americans would consider using their home equity to pay for future long-turn care needs,” said NRMLA President Steve Irwin. “This is encouraging news. The cost of getting in-home care can be significant, even for those who have planned retirement as best as they could.”