Harvard Study Concerned with Seniors High Mortgage Debt

The latest report by Harvard University's Joint Center for Housing Studies (JCHS) states that the nation's homeownership rate fell to 64.5% last year.  This erases nearly all of the increase in the previous two decades.  One group that is of concern is seniors because according to the JCHS "they are entering their retirement years with declining incomes."  The study shows that more than a third (38%) of owners ages 65 and over had mortgages in 2013 which is up from a little over a quarter in 2001.  In addition, the median amount of debt they carried doubled over this period and the median equity in 2013 was $125,000, which is lower than any year since 1998.  The JCHS goes on to say that "having less equity and large mortgage payments late in life is a troubling prospect for households on fixed incomes."  The study believes that a large majority of seniors will most likely remain in their homes for the time being, and they will likely spend more money on home improvements.  "For those seniors that choose to age in place, rising debt and wealth constraints may leave many retired homeowners struggling to meet their mortgage payments," says JCHS.

Read the entire study here.

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