Learn How To Quickly Build At Least $40,000 Worth Of Home Equity And Pay Your Mortgage Off In 10 Years Or Less!

Reverse Mortgage Market Currently at $4.3 Trillion

4th of July, Reverse Mortgage data, bank holiday

Greetings on this 4th of July. I received this great press release in my inbox and wanted to share. Enjoy the holiday!

WASHINGTON, June 28 /PRNewswire/ — Americans age 62 or older hold an estimated $4.3 trillion of home equity according to the NRMLA/Hollister Reverse Mortgage Market Index (RMMI). Although the reverse mortgage industry has seen tremendous growth in the last five years, only a little more than 300,000 reverse mortgages have been originated in its short history, representing less than 1% market penetration.

The index, launched today by the National Reverse Mortgage Lenders Association (NRMLA) and The Hollister Group is the first market indicator to collect critical market, housing and demographic data, and to track and project the market for reverse mortgages.

In the first quarter 2007 alone, there was a $19 billion increase in senior home equity. This increase was reflected in a 0.4% increase in the RMMI to 205.6 from 204.7 in the prior quarter. The index will reflect the current value of senior home equity on a quarterly basis.

Interesting observations and statistics from the inaugural launch of the RMMI, include:

  -- RMMI projects as much as $37 trillion in home value by 2030, from which

     home equity figures are derived, assuming historical appreciation and

     taking into account the demographic shift as boomers begin to turn 62;

  -- The average home equity in a senior-owned household is estimated to be

     about $230,000 according to the Hollister Group;

  -- Current $19B growth in Q1 2007 is the lowest increase of all quarters

     from 2000;

  -- 2004 and 2005 experienced the strongest growth in home equity -- $464

     billion and $600 billion respectively.  About NRMLA

National Reverse Mortgage Lenders Association (NRMLA) represents the reverse mortgage industry, serving as an educational resource, policy advocate and public affairs center for lenders and related professionals. NRMLA was established in 1997 to enhance the professionalism of the reverse mortgage business. For more information, visit http://www.nrmlaonline.org/.

Written by charles dennis on July 4th, 2007 with comments disabled.
Read more articles on Banks & Lenders and Market News and News.

Related articles

Need Health Insurance? FREE Instant Quotes!

Comments disabled

Comments on this article have been disabled.