According to new data released Thursday by the Federal Reserve in Washington, household wealth in the United States has risen by a record $1.7 trillion, or 1.8 percent, during the second quarter of the year.
The increase is reported to be due to rising property values and solid gains in financial assets, bringing the new net worth total of U.S. households to $96.2 trillion – compared to $94.5 trillion in household net worth for the previous quarter.
Unemployment currently stands at a 4.4 percent rate, which is near the level many economists consider as near full employment. Bloomberg noted that a strong job market and low inflation are allowing Americans to improve their purchasing power and helping to sustain household spending.
Household borrowing has increased at a 3.7 percent annual rate in the second quarter, up from a 3.4 percent growth rate in the first quarter.
Household real estate assets rose by $508 billion, and growth in mortgage debt slowed to a 2.8 percent annual rate, down from 3.4 percent in the first quarter. Due to rising home prices, American’s homeownership stakes have increased to 58.4 percent, the report said, which is the highest since the first quarter of 2006.
Fox Business reported that the United States is presently enjoying its ninth year of economic growth, which is the third-longest period of expansion since World War II.
The stock markets have now recovered losses suffered following the 2007-2009 financial crisis and recession, with the S&P 500 currently at all-time highs and the Nasdaq having delivered an approximate 20 percent return since the beginning of 2017.
Last week, the Census Bureau reported that middle-class families enjoyed solid income gains in 2016 for the second straight year, after seven years of stagnating earnings.
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