No, it's not wrong. It is pointing to the JRE used by your JDK, which is what it's supposed to. If you print out JAVA_HOME outside maven, it should print correctly:
C:\>echo %JAVA_HOME%
C:\Program Files\Java\jdk1.7.0_07
C:\>mvn -version
Apache Maven 3.0.4 (r1232337; 2012-01-17 10:44:56+0200)
Maven home: C:\APPS\apache-maven-3.0.4\bin\..
Java version: 1.7.0_07, vendor: Oracle Corporation
Java home: C:\Program Files\Java\jdk1.7.0_07\jre
Default locale: en_US, platform encoding: Cp1252
OS name: "windows 7", version: "6.1", arch: "amd64", family: "windows"
C:\>
So basically JAVA_HOME needs to point to a JDK installation (maven needs the tools.jar) but maven actually uses the jre within the JDK to run itself.
When using mvn -version, maven uses java internal java.home property, as can be seen from source code:
version.append( "Java home: " + System.getProperty( "java.home", "<unknown java home>" ) ).append( LS );
This property is not the same thing as JAVA_HOME environment setting, so it might fool you. It is actually dynamic property showing you which JRE is running your code. If you compile and execute a Test.java test class printing the same, you can see that if your JAVA_HOME points to a JDK, the value of java.home is not equal to your JAVA_HOME. This is expected.
Quoting this:
What's the difference between JAVA_HOME and java.home?
JAVA_HOME is the JDK install directory, e.g., C:\jdk5. It's meant to be
set as an environment variable and referenced in Windows batch files or
Unix scripts. I always have it in my Windows Control Panel and .tcsh
files,along with other common environment variables. Some Java
applications use the name jdk.home for this purpose, which I think is
a better name. But JAVA_HOME has been used since the beginning and is
now a convention.
java.home is the JRE install directory, e.g., C:\jdk5\jre, or
C:\Program Files\Java\jre1.5.0_06. Unlike JAVA_HOME, I never seen
java.home as an environment variable. java.home is a build-in Java
system property, whose value is the JRE install directory. Since all
Java system properties are also exposed as Ant build properties, you
can also use ${java.home} in build files.
Would jre.home be a better name? Maybe, but I don't think Sun will
change it.
You can see that maven uses JAVA_HOME on mvn.bat:
:endInit
SET MAVEN_JAVA_EXE="%JAVA_HOME%\bin\java.exe"
..
%MAVEN_JAVA_EXE% %MAVEN_OPTS% -classpath %CLASSWORLDS_JAR% ..
And if you want to make sure, you can comment out "@echo off" statement in mvn.bat, so you can see that it is being used.
TL;DR: Based on the information you've given, your configuration is correct, no need to change anything.
Edit: thanks to this thread, there was also an issue about this being confusing, which resulted in change of output for Maven version 3.5.4.
TL;DR;)) – Urogenous