Demand is falling for reverse mortgages. The half yearly survey of the market by Trowbridge Deloitte shows sales volume fell ten per cent to $466 million for the calendar year to December 2007.Actual loan settlements for 2007 averaged $57,000. The average size of all reverse mortgages settled to date - taking into account draw downs, repayments and compounding interest - is now $60,000, up from $54,200 the previous year and $51,100 year ending 2005.The total market size has now exceeded two billion dollars or equivalent to 0.2 per cent of the Australian mortgage market, an increase in value of one third over the last year and more than double the size two years ago.Trowbridge Deloitte said that total outstanding loans has grown to 33,700, up from 28,000 in 2006 and double the 16,600 in 2005. Variable loans account for 82 per cent.