US Economy

Household wealth jumps nearly $1.7 trillion to record, thanks to rising home and stock values

Key Points
  • Household wealth climbed to a record in the second quarter, helped by rising stock and house prices.
  • "The value of directly and indirectly held corporate equities increased $1.1 trillion and the value of real estate rose $600 billion, the report said.
  • Consumer credit grew at an annual rate of 4.6 percent, down from 6.2 percent the prior year, according to the report.
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Net household wealth, including that of nonprofits, climbed to a record $96.2 trillion in the second quarter of 2017, the Federal Reserve said in a report released Thursday.

A surge in stock prices to record highs and rising house prices contributed to the increase of nearly $1.7 trillion in wealth from the prior quarter.

"The value of directly and indirectly held corporate equities increased $1.1 trillion and the value of real estate rose $600 billion, the report said.

The climbed nearly 2.6 percent in the second quarter of this year to all-time highs and hit a record of 2,508.85 Wednesday.

The latest read on the S&P CoreLogic Case-Shiller U.S. National Home Price Index showed it hit a record high in June.

The pace of household debt increase moderated to 3.7 percent in the second quarter from a 4.4 percent pace the same period last year, the Fed report said. Consumer credit grew at an annual rate of 4.6 percent, down from 6.2 percent the prior year.

The home mortgage growth rate of 2.8 percent was a slight increase from 2.7 percent in the same period last year, according to the report.