Americans' wealth hit the highest level ever in the second quarter, following a rise in stocks and home prices. This could ramp up consumer borrowing, which could be the key to boosting the economic recovery. Per The Wall Street Journal:
The net worth of U.S. households and nonprofit organizations—the value of homes, stocks and other assets minus debts and other liabilities—rose 1.7%, or about $1.4 trillion, between April and June to $81.5 trillion, the highest on record, according to a report by the Federal Reserve released Thursday.
Overall household borrowing rose at an annualized 3.6% pace in the second quarter, the fastest rate since the first quarter of 2008. Mortgage debt grew 0.4%, after two straight quarters of shrinking. Other types of consumer credit, including student loans, grew 8.1%, stronger than the previous quarter's 6.5% pace.Sponsor Content