WASHINGTON — Homeowners age 62 and older held a record $14.92 trillion in housing wealth during the first quarter of 2026, reversing two consecutive quarterly declines and expanding the amount of home equity available to the reverse mortgage market, according to an analysis by Mortgage Professional citing the latest National Reverse Mortgage Lenders Association (NRMLA)-RiskSpan Reverse Mortgage Market Index.
Senior housing wealth increased by an estimated $314.8 billion, or 1.8%, during the quarter as home values appreciated, the report said. The gain was partially offset by a $10.5 billion, or 0.4%, increase in mortgage debt held by older homeowners.
RiskSpan attributed the rebound in part to mortgage rates briefly falling to their lowest levels since 2022, which supported home prices while the pace of mortgage debt growth among older homeowners slowed.
‘Encouraging News’
“The rebound in senior housing wealth is encouraging news for older homeowners and underscores the important role home equity continues to play in retirement security,” NRMLA President Steve Irwin said in a statement. “With senior home equity reaching another record level, many older Americans have greater financial flexibility to help address rising living expenses, healthcare costs, or other retirement needs.”
Despite the record level of home equity, the analysis noted that reverse mortgage lending has not experienced a corresponding surge.
According to National Mortgage Professional, Home Equity Conversion Mortgage (HECM) endorsements increased 16.3% in March to 2,117 loans from the previous month, but volume remained near recent lows and was down 0.5% from a year earlier.
The Ongoing Challenge
The publication said the disparity highlights an ongoing challenge for the reverse mortgage industry: while older homeowners collectively possess more housing wealth than ever, only a small share of that equity is being accessed through federally insured reverse mortgages.
Instead, proprietary reverse mortgage products have gained traction, particularly among homeowners seeking to tap equity without refinancing low-interest first mortgages obtained during the historically low-rate environment.
National Mortgage Professional pointed to Finance of America’s recent expansion of its HomeSafe Second reverse mortgage into four additional markets as an example of the trend. The product allows eligible homeowners to access equity while keeping their existing first mortgage and avoiding additional monthly principal-and-interest payments.
The publication said the shift reflects the “rate lock-in” effect, in which homeowners with low-rate mortgages have little financial incentive to refinance, even if they have accumulated substantial home equity.
One-Fifth Report Deficits
National Mortgage Professional also cited a separate analysis based on GreenPath Financial Wellness data showing that 21.1% of seniors seeking reverse mortgage counseling in 2025 reported monthly budget deficits, up from 12.2% the previous year. The findings suggest many borrowers are exploring reverse mortgages only after financial pressures have significantly reduced their options.
According to the analysis, the record level of senior housing wealth underscores that many older homeowners remain asset-rich but cash-flow constrained as they contend with rising healthcare costs, property taxes, insurance premiums, home maintenance expenses and other retirement costs.
Reverse mortgages allow eligible homeowners age 62 and older to convert a portion of their home equity into cash without making required monthly principal-and-interest payments, although borrowers must continue paying property taxes, homeowners insurance and maintenance costs. The loan generally becomes due when the borrower sells the home, permanently moves out or dies.
More than 1.3 million households have used Federal Housing Administration-insured reverse mortgages since the program’s inception, according to NRMLA.
