Tags: household | wealth | income | worth

Household Worth Rises by $1.9 Trillion as Stocks, Homes Gain Value

Monday, 09 December 2013 12:59 PM

U.S. household net worth hit a record high in the third quarter as home prices marched higher and the value of stocks and mutual funds surged, boosting the economic outlook.

The Federal Reserve said on Monday net worth increased $1.9 trillion to $77.3 trillion in the third quarter, the highest level since records started in 1945.

The value of residential real estate rose by $428 billion between July and September, and corporate equities and mutual funds were up by $917 billion over the period, it said.

The U.S. central bank has aggressively used ultra-easy monetary policy to foster a recovery in the nation's housing market following a severe 2007-2009 recession, which has also helped propel U.S. stocks to record highs.

Increases in housing wealth make it easier for families to borrow against the equity in their homes, while overall wealth gains make consumers feel generally more comfortable spending their money. Many economists think consumers spend a few cents of every dollar they gain in wealth.

Household debt, in a possible sign that deleveraging has come to a halt, was up by an annualized 3.0 percent in the third quarter, to $13.1 trillion. That number has stabilized over the last several quarters.

© 2019 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Personal-Finance
Household wealth in the U.S. increased from July through September as improvement in the home and equity markets boosted American balance sheets.
household,wealth,income,worth
201
2013-59-09
Monday, 09 December 2013 12:59 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved