Economy

U.S. household net worth rises 2.6 percent in third quarter

126px-US-FederalReserveSystem-Seal.svg_3Data released by the Federal Reserve on Monday showed U.S. household net worth increased by approximately 2.6 percent during the third quarter to reach $77.3 trillion.

Household wealth has risen steadily since the financial crisis of 2008, when it fell to $57.3 trillion. American households have nearly regained all of the wealth lost as a result of the financial crisis.

The increase in net worth can largely be attributed to the booming stock market. The value of corporate equities and mutual funds owned by Americans grew by $917 billion between July and September, and real estate values rose by $428 billion.

Household debt, meanwhile, rose three percent in the third quarter, following a decline in the first quarter and a minimal 0.8 percent increase in the second quarter.

Home mortgage debt rose by one percent, marking the first increase since the first quarter of 2008. Consumer credit rose by six percent, on par with the increase seen in the previous quarter.

Business debt increased 7.5 percent, following a 7.2 percent increase in the second quarter. State and local government debt fell by 3.9 percent after a one percent increase in the second quarter, and federal government debt rose by 1.5 percent.

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