Fed report: US household wealth hits record high in 2Q

  • The net worth of American households hit a new record high in the second quarter and total mortgage debt grew at its fastest level since the recession ended.
  • Rising household wealth can make consumers feel more financially secure and increase their willingness to spend, and during the second quarter more consumers were willing to take on mortgage debt.
  • The value of household real estate also increased to $21.5 trillion in the second quarter, but is still $1 trillion below the peak seen in early 2006.

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In all of the hubbub surrounding the Federal Reserve’s announcement last week that it will put off an interest rate hike until the end of the year, many overlooked an important Fed finding: that the net worth of American households hit a new record high in the second quarter and total mortgage debt grew at its fastest level since the recession ended.