The Rise of the Silver Tsunami

When mortgage lenders look for new markets, they have traditionally looked to emerging markets. However, there is another fast growing demographic that will likely outpace any other group for the next decade or so; the senior population.

The senior population in the United States is growing rapidly, driven largely by the aging of the Baby Boomer generation (those born between 1946 and 1964). As of the 2020 Census, there were nearly 56 million people aged 65 and older in the U.S., making up not quite 17% of the total population.

Between 2010 to 2020 this group saw its fastest growth, with a 38.6% increase​. This is a massive opportunity for lenders who offer reverse mortgages, even more so because; in some states, you only have to be 55 and older to qualify.

By 2030, less than five years from now, all Baby Boomers will be 65 or older, which means that about half of the people over 60 but not yet 65 could get a reverse mortgage if they own a home. There is a silver tsunami coming and lenders who are ready to lend will benefit from it.

A Growing Market for Mortgage Lenders

The total number of people aged 65 and older is projected to rise to over 73 million by 2030, comprising roughly 20% of the U.S. population​.

This demographic shift has been moving toward our industry for a long time and brings significant opportunities for every industry that caters specifically to the needs of older homeowners, like reverse mortgage lending.

However, even these numbers won’t guarantee a substantial increase in business if interest rates are too high for reverse borrowers to transact. As of early 2025, the 10-year Constant Maturity Treasury (CMT), a primary driver of the reverse mortgage qualifying rate, stands at 4.65%. This rate directly impacts the amount of equity a homeowner can access.

We are seeing a steady uptick in reverse mortgage interest. This growth is fueled by improving macro-economic conditions and lenders realizing that entering the reverse mortgage market requires advanced technology. Platforms like the Mortgage Cadence Platform (MCP), which can originate both forward and reverse mortgages within a single tech stack, provide the cost savings and efficiencies lenders are seeking.

This resurgence is capturing the attention of both dedicated reverse mortgage lenders and forward lenders with reverse business lines, signaling a potential boom in this niche yet crucial sector of the mortgage market.

Why This Business is Coming Back and How to Win It

One of the key drivers of this renewed interest is the stability of the 10-year Constant Maturity Treasury (CMT) rate, which as of today stands at an attractive 4.65%.

For the reverse mortgage industry, this is comparable to conventional mortgage rates reaching a sub-6% or 5.5% threshold. This favorable rate environment creates a fertile ground for reverse mortgage borrowers and lenders alike.

This is good news for the approximately 10,000 Americans who cross the retirement threshold daily. This growing cohort of seniors is entering their golden years with substantial home equity, accumulated over decades of homeownership.

Homeowners aged 60 and older control the largest percentage of home equity in the nation, presenting a significant opportunity for the reverse mortgage market.

These seniors face rising consumer prices and escalating healthcare costs, many are looking for ways to tap into their home equity to maintain their quality of life. Reverse mortgages offer a solution, allowing homeowners to access their equity without selling their homes or taking on monthly mortgage payments.

The challenge in the past has been that lenders had to invest in an entirely new loan origination system to produce the loans. Mortgage Cadence has changed all of that with our MCP LOS.

Lenders who can offer both forward and reverse mortgages on the same platform are particularly well-positioned to capitalize on this trend. The ability to serve clients across the spectrum of mortgage products allows these lenders to build long-term relationships and adapt to their clients' changing needs over time.

For the mortgage industry, this signals a shift towards more holistic financial services that cater to clients throughout their homeownership journey, from first-time homebuyers to retirees looking to leverage their life's investment.

If you’d like to find out more about a truly end-to-end loan origination system that allows lenders to enter this market without investing in a new platform and supercharges existing reverse mortgage lenders, reach out to us today.

By George Morales, National Sales Director at Mortgage Cadence 

Want more?

Follow us on LinkedIn to be notified when our next article is released. 

Media Contacts

Mortgage Cadence: 
Alison Flaig 
Head of Marketing 
(919) 906-9738